Self-managed superannuation funds (SMSFs) experience far less issues with non-payment of contributions than other superannuation funds, thanks to the direct involvement of their members, according to the SMSF Association.
The direct access and knowledge of their fund's bank account coupled with direct administration and management of their superannuation helped SMSF trustees and members better monitor employer contributions to their SMSF.
SMSF Association's managing director and chief executive, Andrea Slattery, stressed that there was significant concern by the industry funds sector about the large amounts of compulsory superannuation not being paid to employees.
The issue is currently the subject of an inquiry by the senate standing committee on economics.
"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," Slattery said.
"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.
"Certainly the association will support moves to tighten up the system to ensure employers meet their legal obligations."
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I'm shocked!
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