The Federal Opposition has slammed the choice of fund regime imposed on employers claiming it represents a “massive new red tape slug”.
The Opposition spokesman on Financial Services and Superannuation Senator Nick Sherry used the Government’s release of a choice of fund employer guide last month to harshly criticise the new regime, claiming it represents a real impost on employers.
“For 900,000 employers, it will mean a massive new compliance burden requiring some 34 complex steps,” Sherry said.
He said those steps included distribution of forms to existing employees, on-going record keeping, payments to multiple funds and the reality of fines of up to $500 per employee if they got things wrong.
“Small business will be hardest hit by the new compliance burden and that is why Labor is calling for the exemption of small business from super choice,” Sherry said.
Sherry said that while employers were being confronted with a hefty compliance burden, employees were being confronted by an unsafe regulatory framework that failed to protect consumers against fee rip-offs.
