POWERED BY MOMENTUM MEDIA
(August-2004) No to small business exemptions
The Federal Government is likely to face rejection in the Senate if it seeks to pass either regulatory or legislative changes exempting small businesses from quarterly superannuation reporting before the next election.
Both the Australian Labor Party and the Australian Democrats have signalled their opposition to the move flagged by the Prime Minister, John Howard, in a speech to a small business forum in early July.
The Australian Democrats, who have been key to ensuring the passage of the Government’s major superannuation policy positions, are making clear the Prime Minister’s announcement represents a retrograde step.
Democrats Superannuation spokesperson John Cherry says the change in reporting will make it harder for workers to keep track of their superannuation.
“This reporting measure was introduced to address the growing number of lost superannuation accounts that total around $7 billion and affect around 2.75 million workers,” he says. “I acknowledge that this is a cost to employers, but only a small one. What it means in terms of helping workers keep track of their super is vitally important.”
Cherry says the Democrats are prepared to consider other means of reducing compliance costs to employers on superannuation reporting, with one option being to funnel superannuation guarantee payments through the Tax Office, which would then pay to the fund of choice.
The Association of Superannuation Funds Australia says the Government’s move risks inhibiting the new choice of fund environment.
ASFA’s director of policy and research, Michaela Anderson, says the move contradicts the spirit of choice which is supposed to be about giving employees more control over their super.
For its part, the Australian Labor Party says the Government’s move represents a major backflip and will be revealed as meaningless.
AUTHOR
Mike Taylor
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