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
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
