POWERED BY MOMENTUM MEDIA
“Onerous” SG non-compliance penalties hurt small businesses
The Institute for Public Accountants has slammed penalties for super guarantee (SG) non-compliance as “draconian,” saying that they could be very damaging to struggling small businesses and warning that more red tape could be coming.
Presently, non-complying employers would be required to pay “onerous charges” of both the total of their total SG shortfalls for the year and nominal interest and administration fees for that quarter.
They could also be liable to pay an additional SG penalty of up to 200 per cent of the SG charge payable should they fail to lodge an SG statement to the Commissioner.
The IPA labelled such punishments “draconian,” saying that it could damage small businesses struggling with cash flow issues.
While IPA chief executive officer, Andrew Conway, acknowledged that employers should make timely and accurate superannuation payments on behalf of their staff, he slammed the penalties for failing to differentiate between small businesses.
“Let’s get human and … not tar every small business with the same excessive compliance brush,” he said.
Conway said “a more measured approach” to non-compliance was needed, with the “draconian” measures needing to go before new measures, such as education, imprisonment or directions to pay, were added.
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
