Koa: when recovery isn’t possible — but clarity still matters

Koa contacted our office after spending several years trying to recover unpaid superannuation from a former employer. Over time, they became increasingly distressed by what they saw as slow progress, limited information, and a lack of clear updates about what action was being taken.

The employer was a corporate trustee with multiple directors and a long compliance history. Based on their own past involvement in the business, Koa believed assets were being concealed through related entities to avoid paying debts. While the ATO had taken recovery action over the years, including issuing Director Penalty Notices and a statutory demand and yet there had been no meaningful recovery of the unpaid super.

A key challenge in this case was the ATO’s strict confidentiality obligations. Even where Koa felt they already understood what was happening behind the scenes, the ATO was legally limited in what it could confirm or disclose about its compliance and recovery activity. This contributed to frustration and a sense of being “kept in the dark”, despite genuine efforts underway.

Our role focused on clarity, expectation setting and care. We worked with the ATO to explain, in plain language, what information could be shared, what could not, and why. We asked the ATO to outline the general recovery pathway. This includes that the ATO will inform you by letter or email if they’re able to collect any unpaid super and distribute it to your super fund. This process may take some time, and not every referral results in the collection of unpaid super. We also acknowledged the emotional toll of a long-running matter where progress is slow and outcomes are uncertain.

When public registers later showed the employer moving toward deregistration, we helped Koa understand what that development might mean, without overstating its significance or creating false expectations.

Although the superannuation remained unpaid when the complaint was closed, Koa told us they felt heard, better informed, and clearer about the limits of what could be achieved.