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SCT to hear small business super disputes
The Federal Government will expand the role of the Superannuation Complaints Tribunal, allowing small businesses to lodge complaints against Australian Prudential Regulation Authority (APRA)-regulated funds through the consumer complaints process.
It will appoint additional members with relevant experience to deal with small business complaints.
The Minister Assisting for Financial Services and Superannuation, David Bradbury, said it filled a gap in the existing external dispute resolution system by allowing small businesses similar dispute resolution processes with super as it had with other financial services providers.
"The SCT will provide small businesses with an alternative means of resolving disputes with superannuation funds to the private legal system, thereby potentially reducing costs on small business," said the Minister for Small Business, Gary Gray.
The Federal Government said stakeholders would be consulted in the legislative process.
Council of Small Business Australia (COSBOA) executive director, Peter Strong welcomed the changes and said the organisation had been campaigning for change in the superannuation collection process due to a “lack of respect shown to employers from superannuation funds.”
Strong named some of the country's biggest industry funds as being a law unto themselves that threatened small business with unnecessary legal action.
“They bully people and also have practices that would be considered scams if undertaken by other financial institutions.”
“We would rather be removed altogether from the collection process but if we can get a person with authority to force the funds into the real business world then we have achieved a good solid outcome.”
The Opposition has said it would allow small business to make super contributions directly through the Australian Taxation Office (ATO) in its proposals to “cut red tape”.
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