POWERED BY MOMENTUM MEDIA
SG non-compliance a $2.5b problem
There needs to be greater cooperation between superannuation funds and the Australian Taxation Office (ATO) in dealing with instances of employer non-payment of superannuation guarantee (SG) contributions, according to new research.
The research has also confirmed that it could be many years before most super fund members see a result from the pursuit of the lost superannuation, with members taking up to two years to report perceived non-compliance, and the ATO taking between two and four years to actually take action.
The research, conducted by Tria Partners with contributions from the Association of Superannuation Funds of Australia, has pointed to SG non-compliance as being a $2.5 billion problem which needs to be addressed in a cooperative fashion.
And the reason why the research points to greater cooperation on the part of superannuation funds is that it has concluded that funds have a greater incentive to pursue SG non-compliance because recovered funds are remitted to them rather than the ATO.
What is more, the research has found that most (53 per cent) superannuation fund members look first to their super funds to pursue recovery of unpaid SG contributions compared to the 43 per cent who look to the ATO.
The research found that the industry in which SG non-compliance was most prevalent was construction, with other industries with elevated non-compliance including property services, mining, hospitality, and manufacturing.
Recommended for you
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
