POWERED BY MOMENTUM MEDIA
Tax Ombudsman points out glaring YFYS oversight
A submission to a Parliamentary Committee reviewing the Government’s controversial Your Future, Your Super legislation has revealed a significant oversight – the legislation allows for employers to be informed of a new employee’s stapled superannuation, but not employees themselves.
The issue has been raised by the inspector general of taxation and Tax Ombudsman which has noted that while the legislation allows an employer to request that the Australian Taxation Office (ATO) identify any stapled fund for an employee, it does allow the employee the same privilege.
“We note that in accordance with section 32R of the bill, an employer (or their agent) may request the [Tax] Commissioner identify any stapled fund for an employee. However, it is not clear what process an employee should follow to identify their own stapled fund,” the submission said.
“When an employee commences at a new place of employment, they are requested to provide to the employer their choice of fund, or have their super paid into their stapled fund,” it said.
“In some situations, the employee may not necessarily recollect any funds of which they may be a member (arising from past employment) or any stapled funds relevant to them, which renders the making of informed decisions difficult.
“We therefore believe it would be beneficial for informational accuracy and improved tax administration if there was an easy and accessible way for employees to identify their own stapled fund – whether in the regulations, legislative instrument or other tax administration processes.”
Recommended for you
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
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(%)
