The Australian Institute of Superannuation Trustees has called on the federal government to reconsider changes to the superannuation guarantee charge, indicating that it will undermine consumer protections.
The superannuation guarantee charge (SG), under the proposed changes, will lessen the penalties for employers not meeting their obligations to pay superannuation to their employees.
AIST executive manager, policy and research, David Haynes said the changes will remove the incentive for employers to pay mandatory payments on time
“The system should reward employers who are good corporate citizens and penalise employers who are bad corporate citizens,” My Haynes said.
“The penalty for not paying super on time should be substantially greater than the SG itself."
According to AIST, an employee earning approximately $5,000 per month would receive $1,140 in superannuation. Under the current method, if this payment was late, the employer would be required to pay an additional $285.
However, AIST pointed out that under the proposed changes the employer is only liable for the unpaid super.
“The purpose of the charge is to encourage employers to meet their legal obligations, it is fundamentally a form of consumer protection,” Mr Haynes said.
Automated rollovers for superannuation accounts when people change jobs could save a total of $416 billion for consumers, a new report has ...
The review into APRA’s capabilities has been released and the review has singled out APRA’s handling of superannuation as an area that n...
One Australian super fund has invested in new energy loans via a peer-to-peer lender in what is touted as an Australian super fund first. ...