POWERED BY MOMENTUM MEDIA
Accountants like SG penalty proposal
Despite rejection by a super body the Institute of Public Accountants (IPA) has welcomed the Government's proposal to reduce the penalty for late paying super guarantee employers.
IPA believes the reduction is unreasonable and disproportionate to mischief and will help small businesses.
The firm's chief executive, Andrew Conway said the penalties have a significant impact on small businesses that make late payments due to cash flow issues.
"In fact, the penalty regime can lead to further non-compliance delays in employers making superannuation contributions. The onerous penalty regime has done little to address the problem of unpaid superannuation which some experts say is on the rise," Conway said.
"Small businesses do not have access to the same resources of larger entities when cash is tight. Due to limited funds, one option for a small business is to delay payment of employee obligations. While we don't condone this practice, for many small businesses it is a reality."
Conway noted the interest charged, the administrative fee, and potential penalties are sufficient incentives for an employer to meet their SG obligations rather than pay the SG charge.
"Currently the SG is worked out based on the employee's salary and wages which is a broader base than ordinary time's earnings," he said.
"We recommend moving to a single base for calculations, which will simplify the process for employers to comply with their super obligations."
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
