Billions of dollars in superannuation payments that may be owed to public servants will be retrospectively blocked by the federal government, as a court considers whether the government will have to pay up.
The federal government is trying to block a superannuation claim from public servants that threatens to cost the Commonwealth as much as $8 billion.A court is considering whether public servants are entitled to billions more in super paymentsThe federal government is attempting to block the payments, if the court deems they are owed
The unusual move was sparked by an ongoing case in the Federal Court brought by three employees at the Department of Foreign Affairs and Trade . The government's bill would retrospectively repeal a paragraph of existing legislation that includes the value of rent-free housing in the default superannuation salary of Commonwealth employees in certain circumstances, which the men are using to bring the case.
A spokesman added it could lead to "windfall gains" in some cases, potentially worth several millions of dollars, which the government considered "well beyond community standards".
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