THE GOVERNMENT’S proposal to exempt employers from reporting quarterly to employees that their super has been paid into an appropriate fund, will stymie choice of fund and disadvantage many of Australia’s most vulnerable employees, according to The Association of Superannuation Funds of Australia (ASFA)
THE GOVERNMENT’S proposal to exempt employers from reporting quarterly to employees that their super has been paid into an appropriate fund, will stymie choice of fund and disadvantage many of Australia’s most vulnerable employees, according to The Association of Superannuation Funds of Australia (ASFA).
Employer quarterly reporting and payment of super entitlements was introduced by the government in July 2003 to help safeguard employees’ super.
“Although the quarterly payment rule remains, the government has done an about-face and reneged on its year-old promise to help employees monitor whether their employer is doing the right thing by them,” said Michaela Anderson, director of Policy & Research at ASFA.
She pointed out that the proposal will also disadvantage employees when choice of fund is introduced next year.
“This move contradicts the spirit of choice, which is supposed to be about giving employees more control over their super,” she said.
“How can they monitor whether their employer has paid their super into their chosen fund?”
She said the reality is that workers in small businesses will be particularly disadvantaged, since the proposal is aimed at lessening an alleged burden on their employers. All employers must by law provide wage slips and group certificates for each employee.
Prior to the 2003 legislation, the ATO said that the groups of employees most affected by employer non-compliance with the Super Guarantee were contractors, part-time and casual employees, women and those employed in regional areas.
At present, around 10,000 employees a year report to the ATO a possible non-payment of super by their employer or ex-employer. ASFA suggested that this is only the tip of the iceberg.
The ACTU also expressed concerns over the proposal, claiming it would pose problems for employees not covered by awards or enterprise agreements and whose super contributions do not appear on their pay slips.
“They will not be able to check that they are being regularly paid the right amount of superannuation contribution from their employer,” said ACTU President Sharan Burrow.
“Too often we have seen companies collapse leaving workers with unpaid entitlements including superannuation contributions.”
