POWERED BY MOMENTUM MEDIA
No provision made for communicating on defaults
Employers who find their default superannuation fund arrangements altered as a result of the Fair Work Commission’s (FWC’s) current review, may have difficulty dealing with their situation because the Government has made no specific funding provisions for communicating the outcomes.
The Department of Employment has confirmed that no specific plan is in place to communicate with affected employers, but states that it is monitoring the situation.
The regime was put in place by former Employment and Workplace Relations Minister and now Opposition leader, Bill Shorten.
In answers to questions on notice by National Party Senator, Bridget McKenzie, the department said it was “closely monitoring proceedings during the four-yearly review of default fund terms in modern awards”.
“If the department becomes aware of any potential significant disruption for employers arising from the review, the department will provide advice to the Minister accordingly,” it said.
Senator McKenzie had asked whether the department had devised a communications strategy to deal with employers and whether amnesties would be granted.
The departmental answer did not deal with the possibility of an amnesty.
In other answers provided during Senate Estimates, the department could not provide its own estimate of the cost of the default funds review exercise, but referenced a figure provided by the Financial Services Council of $45 million.
The department also admitted it could not provide an definitive answer with respect to how many employer default funds were being grandfathered through the process.
“On the matter of grandfathered employer plans, employers using their own plans prior to commencement of modern awards were not required to notify they were continuing to use these plans. Consequently, there is no record of how many employer plans have been grandfathered,” the departmental answer said.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
