AUSTRALIA - The introduction of superannuation fund choice in July should not force employers to make more frequent payments, the Australian Chamber of Commerce and Industry (ACCI) argues.
In a submission to the federal Treasury’s Choice of Superannuation Fund Regulations Consultation Paper, chief executive Peter Hendy says fund choice is sensible policy but should not be used to compel employer payments more frequently than current legal obligations.
Employers are currently required to make payments at least quarterly, to minimise the problem of unpaid entitlements on insolvency.
“The possibility that rules set by a fund chosen by an employee could require employers to sign-up to payments more frequently than each quarter needs to be ruled out,” Hendy said.
The ACCI says for smaller employers, making payments more often than quarterly could have adverse cash flow implications, given that the compulsory employer payments are set at 9% of payroll.
In its submission, ACCI proposes all implementation measures be “road-tested” before their introduction and that an extensive education, awareness and information campaign be conducted before July, in conjunction with industry.
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