The tax office is pausing applications for early access to superannuation after instances of identity fraud were detected.
More than 1.2 million Australians have applied to withdraw nearly $10 billion from their super accounts during the coronavirus pandemic.
Assistant Treasurer Michael Sukkar said claims to early super would be frozen while the alleged frauds were investigated.
“Today we will undertake that process just to make sure there is nothing more that the ATO could do,” he said.
“There’s been one isolated incident where I think it’s fair to say identify theft has been involved,” Mr Sukkar said.
“That’s being investigated by the AFP but I emphasise these are not compromises of the ATO’s system, these are flat out fraud.
“Sadly, in the world we live in, the ATO and taxpayers’ information is under constant attack – every day of the year. This program is no different,”
The announcement means the scheme will be frozen until Monday.
Beginning last month, the government allowed workers who had been retrenched or suffered financial hardship due to the COVID-19 pandemic to access up to $20,000 of their accumulated super.
Those eligible are able to claim $10,000 before June 30, and a further $10,000 in the new financial year.