IR reforms ignite super fears
The Association of Superannuation Funds of Australia (ASFA) has expressed concern that the Federal Government’s new industrial relations laws will not enshrine superannuation as a key employment condition beyond June 30, 2008.
In a submission to the Senate Employment, Workplace Relations and Education Committee, ASFA’s director of policy and research Michaela Anderson said the Government’s new Work Choices Bill proposed that certain employment conditions within existing awards, including superannuation, be preserved.
“We are pleased to see that superannuation is considered a key employment condition in this context and that existing superannuation conditions are to be preserved,” the submission said. “However, unlike those other preserved conditions, the superannuation provisions are subject to a sunset clause, with preserved conditions only to operate until June 30, 2008.”
The ASFA submission questions assertions in the explanatory information attached to the Government’s legislation that the June 30, 2008 sunset is necessary because of changes introduced to the Superannuation Guarantee (Administration) Act 1992.
“Our real concern is, however, that the explanation provided as the reason for the 2008 sunset does not acknowledge that award provisions in respect of superannuation do more than establish a different earnings base for superannuation purposes,” it said.
“Federal awards often establish other superannuation provisions; payment of superannuation for employees who earn less than $450 a month, more frequent contributions or employers to be liable for unpaid superannuation,” the submission said. “These provisions will be lost and in some instance, the employee adversely affected.”
ASFA said it would be recommending that the Government remove the 2008 sunset clause for the preservation of superannuation so as to ensure that existing provisions were maintained.
Recommended for you
Advisers at DOD Bookkeeping, which received an $11 million penalty last week, received as much as 40 per cent of their remuneration via a bonus when clients purchased a property via a SMSF, according to court documents.
Private wealth manager Escala Partners has launched an end-to-end investment platform to strengthen its alternatives capability as clients seek sophisticated vehicles.
Perpetual Wealth Management has hired two advisers from Ord Minnett as part of five hires, just weeks after the rival firm announced it had picked up six from Perpetual Private.
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
