Enforcement of the Superannuation Guarantee Charge Source: SenateSuper 'Media Releases' 22nd May 2000 This material is reproduced by permission but does not purport to be the official or authorised version. The accuracy of the content is not guaranteed. Please rely only on the authorised document. 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: http://www.aph.gov.au/senate/committee Further details: Senate Select Committee on Superannuation and Financial Services Web site: www.aph.gov.au/senate/committee/superfinan_ctte Submit an Article to the Newsroom DISCLAIMER: Supercorp Australia Pty Ltd and its officers and employees, disclaim all and any liability and responsibility to any person for any act or consequence or omission in respect of the above information. No person should rely on the contents of this information without obtaining advice from a qualified professional. Copyright © 1999-2002 - Supercorp Australia Pty Ltd - ABN 92 063 307 700