POWERED BY MOMENTUM MEDIA
Align PAYG and superannuation contributions: IPA
The Government's proposed changes to super fund notification requirements will be ineffective and expensive to administer according to the Institute of Public Accountants (IPA) who have advocated for the alignment of PAYG and super contributions.
The IPA said under the proposal, employers would be expected to report on super contributions quarterly or half-yearly.
It said members were expected to notice any reduction in contributions and contact the regulator, however, research had indicated that the majority of Australians were not engaged with their retirement savings.
"An email or SMS from your fund may not be sufficient to attract the attention of the employee," IPA chief executive, Andrew Conway said.
Even if only a small number of employers were affected, it was unacceptable that employees should be denied their full superannuation entitlements, according to IPA.
Conway said the proposed strategy would be expensive for employers and required a lot of effort for the employer to maintain records.
Financial stress was the key cause of employers failing to pay superannuation entitlements, and because superannuation payments were separate to PAYG deductions, employers had greater scope to hold on to entitlements, according to the IPA.
The simple way to resolve the issue was to align superannuation payments with PAYG payments, it said.
"By aligning the requirement to pay superannuation payments with PAYG payments and having these payments made direct into the fund or a clearing house, the problem will be more effectively and efficiently addressed.
"Funds will not have to implement expensive changes. Employees will be assured their superannuation entitlements are paid and employers will have one less different payment period to worry about. Everyone wins," Conway said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
