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
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
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
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
