Help us pursue employer laggards says Cbus

7 March 2017

| By Mike |

Superannuation funds can and should be allowed to play a greater role in collecting unpaid superannuation guarantee (SG) contributions directly from employers, according to major building and construction industry fund Cbus.

Cbus, which found itself in trouble for providing member data to the Construction Forestry Mining and Energy Union (CFMEU) in relation to employer SG non-payment, pointed out that it had in place its own trust deed which requiring employers to make monthly SG payments.

However, it told the Parliamentary Committee inquiring into SG non-payment, that even this was imperfect and it agreed with the analysis that there should be greater liaison between the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and superannuation funds to assist in early detection and information sharing.

“Our knowledge of the industry and constant interaction with employers give us a much better chance of collecting unpaid super than many of the individuals who experience it,” Cbus said. “However, we do not have a direct, clear, enforceable mechanism for doing so, both in cases where the employer is not subject to the terms of the trust deed and where an employer becomes insolvent.”

VIEW ALL

View all

“When an insolvency practitioner is involved they are often reluctant to liaise with funds due to perceived privacy issues; and where the ATO issues a proof of debt this takes precedence over the fund’s actions.”

“Super funds can, and should, be allowed to play a greater role in collecting unpaid super directly, particularly where employees do not have the time or understanding to pursue it themselves,” the Cbus submission said.