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.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment