The Australian Taxation Office (ATO) has been taken to task for initiating discussions around the implementation of single touch payroll arrangements without consulting the superannuation industry.
The Association of Superannuation Funds of Australia (ASFA) has pointed out to the ATO that while the discussions around the proposed new arrangements have been on foot since at least the middle of last year, it has only been recently that superannuation funds have been brought into the equation.
"ASFA's initial concern is that, despite acknowledging the processing of employer superannuation obligations formed part of the project scope, it is only recently that an attempt has been made to engage formally with the superannuation industry in respect to this project," the ASFA submission said.
"In recent years the superannuation industry has been going through extensive change, including implementation of mandated data standards for the electronic exchange of superannuation payments and data between employers and superannuation funds," it said. Given the ATO has regulatory oversight of the adoption of data standards, and is the standards setter, ASFA finds this lack of early engagement both surprising and disappointing."
The ASFA submission also questioned the narrow scope of the ATO project with respect to payroll deductions and its focus on PAYG withholding and superannuation compliance while ignoring other employer-based reporting such as payroll tax, workers compensation payments, child support, paid parental leave, salary packaging and employee-requested payroll deductions.
"ASFA considers that if ‘single touch' truly is the goal then the above items and other payments that flow directly out of payroll systems or are based on payroll information, should be contemplated or considered in the technical design," the submission said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
Add new comment