POWERED BY MOMENTUM MEDIA
Board of Tax review must tackle super payment compliance
Industry fund Cbus said the Board of Taxation review has to focus on the non-compliance of superannuation payments by employers and the penalties for this in order to boost retirement savings.
Cbus argued that with research from Tria Investment Partners, which it commissioned, showing last year that 650,000 Australians missing out on a total of $2.5 billion in compulsory super payments, policy makers need to guarantee timely compliance with super payments before making decisions on policy recommendations.
The comments come off the back of the Board of Taxation report, which said the present penalty regime for employers is "unnecessarily harsh".
"The recommendations of the Board of Taxation appear to be proposed on the basis of removing compliance requirements for small business. Yet their test should, more importantly, be whether they will ensure compulsory and legislated payments are made by employers," Cbus CEO David Atkin said.
"Cbus recognises that the vast majority of our Funds' employers do the right thing by their employees and pay their superannuation. They understand the importance of retirement savings for their employees and oppose those who avoid or game payments because it creates an unfair advantage in a highly competitive market."
Atkin also urged policy makers to consider young people, low income earners and those in high-risk before making decisions on policy recommendations.
Recommended for you
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
