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.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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