The Australian Taxation Office (ATO) has been taken to task for initiating discussions around the implementation of single touch payroll arrangements without consulting the superannuation industry.
The Association of Superannuation Funds of Australia (ASFA) has pointed out to the ATO that while the discussions around the proposed new arrangements have been on foot since at least the middle of last year, it has only been recently that superannuation funds have been brought into the equation.
"ASFA's initial concern is that, despite acknowledging the processing of employer superannuation obligations formed part of the project scope, it is only recently that an attempt has been made to engage formally with the superannuation industry in respect to this project," the ASFA submission said.
"In recent years the superannuation industry has been going through extensive change, including implementation of mandated data standards for the electronic exchange of superannuation payments and data between employers and superannuation funds," it said. Given the ATO has regulatory oversight of the adoption of data standards, and is the standards setter, ASFA finds this lack of early engagement both surprising and disappointing."
The ASFA submission also questioned the narrow scope of the ATO project with respect to payroll deductions and its focus on PAYG withholding and superannuation compliance while ignoring other employer-based reporting such as payroll tax, workers compensation payments, child support, paid parental leave, salary packaging and employee-requested payroll deductions.
"ASFA considers that if ‘single touch' truly is the goal then the above items and other payments that flow directly out of payroll systems or are based on payroll information, should be contemplated or considered in the technical design," the submission said.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.