Self-managed super funds (SMSFs) experience far less issues with non-payment of contributions than other superannuation funds, thanks to a direct involvement of their members, according to the SMSF Association.
The direct administration and management of the superannuation by the SMSF trustees and members helped ensure they received all employer contributions as they were more aware of the contributions being made to their funds.
SMSF Association’s managing director and chief executive, Andrea Slattery, noted that the industry funds sector was concerned that large amounts of compulsory superannuation was not being paid to employees and the issue is currently a subject to an inquiry by the senate standing committee on economics.
“As the non-payment of compulsory superannuation to employees can have a severe impact on people’s capacity to save for retirement, it’s imperative that this issue is addressed immediately,” she said.
“Certainly the association will support moves to tighten up the system to ensure employers meet their legal obligations.
“Based on significant research and empirical evidence, SMSF members are generally more engaged with the direct administration and management of their superannuation, as a consequence are more aware of the contributions being made to their fund.”
