“Draconian” SG non-compliance penalties damaging small businesses

IPA superannuation super guarantee small business

22 February 2018
| By Hannah Wootton |
image
image
expand image

Penalties imposed on employers for failing to pay the super guarantee (SG) could be seriously damaging small businesses, the Institute of Public Accountants (IPA) has warned, and more red tape could be on the way.

Presently, non-complying employers would be required to “onerous charges” of both the total of their total SG shortfalls for the year and nominal interest and administration fees for that quarter.

They could also be liable to pay an additional SG penalty of up to 200 per cent of the SG charge payable should they fail to lodge an SG statement to the Commissioner.

The IPA labelled such punishments “draconian,” saying that it could damage small businesses struggling with cash flow issues.

While IPA chief executive officer, Andrew Conway, acknowledged that employers should make timely and accurate superannuation payments on behalf of their staff, he slammed the penalties for failing to differentiate between offenders.

“Let’s get human and … not tar every small business with the same excessive compliance brush,” he said.

Conway said “a more measured approach” to non-compliance was needed, with the “draconian” measures needing to go before new measures, such as education, imprisonment or directions to pay, were added.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 6 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 10 hours ago