POWERED BY MOMENTUM MEDIA
IPA says SG penalty regime too harsh
The current onerous penalty regime relating to superannuation guarantee (SG) non-payment has done little to address the problem and may have actually made it worse, according to the Institute of Public Accountants (IPA).
In a submission to the Senate Economics Committee inquiry into non-payment of the SG, the IPA has argued that the penalties might very often be “disproportionate to the mischief”.
“The harshness of the penalty regime can lead to further noncompliance delays, i.e. employers further delaying making superannuation contributions,” it said.
“The current onerous penalty regime has done little to address the problem of unpaid superannuation guarantee remittances which some experts are claiming is worsening. Moreover these punitive penalties have a significant impact on small businesses which are often late in meeting their SG obligations due to cashflow problems and not because of any more sinister intentions,” the IPA submission said.
It pointed out that small businesses did not have access to the same financial resources compared with larger businesses, stating: “Due to limited access to funds, one option they have is to delay payment of employee obligations”.
The IPA submission said that while its members strongly discouraged this practice, “for many small businesses it is a harsh reality”.
“Whilst a penalty regime is required as a deterrent to ensure employers meet their statutory employee obligations, the harshness of the current regime is considered excessive especially for the small business sector,” it said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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(%)
