Small business objects to super fund threats
Small businesses should be given the ability to complain when they are wrongly the subject of demands from industry superannuation funds, according to Council of Small Business Australia (COSBOA) chair, Peter Strong.
Strong used an appearance before the Senate Economics Legislation Committee to complain about instances where small businesses had been subjected to demands from superannuation funds for payment of superannuation guarantee (SG) contributions irrespective of whether a debt existed.
Strong said that such demands were, in the main, emanating from industry funds although some might have also been received from retail funds.
He said the demands represented a substantial problem for small businesses because they were usually accompanied with the threat of legal action which meant they could be both expensive and time-consuming.
Strong said he believed superannuation funds would take much more care in making such demands if small business employers had access to a complaints process.
Strong’s comments came as the Senate Committee used a public hearing to hear evidence with respect to the formation of the Australian Financial Complaints Authority (AFCA) during which the COSBOA chief executive suggested small business needed a voice in external dispute resolution arrangements.
v
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
