An industry association has responded strongly to revelations that significant amounts of compulsory superannuation have not been paid to employees.
SMSF Association chief executive Andrea Slattery criticised employers who are not paying their employees their owed contributions. The matter is currently before the Senate Standing Committees on Economics.
“As the non-payment of compulsory superannuation to employees can have a severe impact on people’s capacity to save for retirement, it’s imperative that this issue is addressed immediately,” Ms Slattery said.
“Certainly the association will support moves to tighten up the system to ensure employers meet their legal obligations.”
Ms Slattery said that while the issue was a particular concern for industry funds, it remains far less prevalent for SMSFs.
“Based on significant research and empirical evidence, SMSF members are generally more engaged with the direct administration and management of their superannuation, and as a consequence are more aware of the contributions being made to their fund,” she said.
“Discussing this issue with SMSF specialists would certainly suggest non-payment of employer contributions is not a problem in the SMSF sector to the degree it is for members of APRA-regulated funds as outlined recently by the industry funds sector.
“If there is an issue, it is usually identified very quickly.”
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