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Enforcement of the Superannuation Guarantee Charge
The Senate Select Committee on Superannuation and Financial
Services held a Public Hearing in Sydney on 15 May on matters relating
to superannuation and financial services. One of the matters the
Committee is inquiring into is enforcement of the Superannuation Guarantee
Charge.
The Committee heard evidence from key witness groups,
including consultative organisations (ASFA and IFSA), consumer representatives
(the Financial Services Consumer Policy Centre), employee representatives
(AMWU), fund administrators and service providers, including AMP Financial
Services, REST Super, and Phillips Fox Actuaries.
Deficiencies in the Superannuation Guarantee legislation,
and in its administration by the Australian Tax Office (ATO), which impacts
on both employers and employees, was the major concern raised by witnesses
at the hearing. In particular, witnesses drew attention to the following:
- Loss of retirement income for super fund members through employer
default on SG contributions;
- Loss of insurance and disability cover where SG contributions are
late or missed;
- Lack of standing under SG legislation of individual employees to institute
action to recover unpaid SG entitlements;
- ATO to be more vigorous in pursuing defaulting employers;
- Poor communication between ATO and individual employees concerning
unpaid contributions; and
- Growth of unclaimed superannuation entitlements in vehicles overseen
by the ATO - the Lost Member Register, the Small Holding Accounts Reserve
(SHAR) and in unredeemed SG vouchers.
The transcript of the hearing is available on the internet
at: www.aph.gov.au/hansard/senate/commttee/comsen.htm
| For comment: |
Senator John Watson
Chair
|
02 6277 3685 (Canberra) or
03 6331 4544 (Launceston, TAS) |
| For information: |
Sue Morton
Secretary
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02 6277 3458 or
0416278258 |
| Internet access: |
http://www.aph.gov.au/senate/committee |
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| Email: |
super.sen@aph.gov.au |
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22 May 2000
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