The Institute for Public Accountants has slammed penalties for super guarantee (SG) non-compliance as “draconian,” saying that they could be very damaging to struggling small businesses and warning that more red tape could be coming.
Presently, non-complying employers would be required to pay “onerous charges” of both the total of their total SG shortfalls for the year and nominal interest and administration fees for that quarter.
They could also be liable to pay an additional SG penalty of up to 200 per cent of the SG charge payable should they fail to lodge an SG statement to the Commissioner.
The IPA labelled such punishments “draconian,” saying that it could damage small businesses struggling with cash flow issues.
While IPA chief executive officer, Andrew Conway, acknowledged that employers should make timely and accurate superannuation payments on behalf of their staff, he slammed the penalties for failing to differentiate between small businesses.
“Let’s get human and … not tar every small business with the same excessive compliance brush,” he said.
Conway said “a more measured approach” to non-compliance was needed, with the “draconian” measures needing to go before new measures, such as education, imprisonment or directions to pay, were added.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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