Industry condemns super reporting exemption
By Rebecca Evans
The superannuation industry has deemed the Federal Government’s decision to exempt employers from issuing quarterly super contribution statements a massive blow to the financial security of the Australian workforce.
Prime Minister John Howard has described the current super reporting requirements at an address to the Council of Small Business as “often very irksome and burdensome”. However, the Associationof Superannuation Fundsof Australia (ASFA) says the Government’s decision is in opposition with the recently passed choice of fund legislation.
“It contradicts the spirit of choice, which is supposed to be about giving employees more control over their super. How can they monitor whether their employer has paid their super into their chosen fund?” ASFA director of policy and research Michaela Anderson says.
Industry Fund Services (IFS) managing director Sandy Grant says the Prime Minister’s decision denies employees the right to know whether the contributions have been faithfully lodged.
“In the heat of the phoney election campaign, the security of employees’ superannuation comes second to the administrative convenience of employers,” Grant says.
“It is not much good monitoring the performance of your super fund if you cannot be sure that your super has been invested in it,” he says.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
