Small Business Should Receive 10% Commission on Superannuation Collected for Funds
COSBOA today called on the government to build on agreements between large retailers and the retail union and force funds to compensate employers for time spent administering superannuation payments.
Peter Strong, CEO of COSBOA, stated “for decades the duopoly have collected union fees for the retail union, the SDA. In return 10% of funds collected are returned to these employers by the union to compensate for the administrative work associated with the process. This provides the proof that we need a similar approach to the collection of superannuation.
Employers must be reimbursed 10% of superannuation collected on the funds behalf.”
COSBOA knows that the superannuation collection process has been onerous and often torturous for small business people. The industry superannuation funds in particular continue to scam small business people by misrepresenting process and claiming false amounts due to be paid.
Some funds threaten small business people with legal action even if they, the funds, don’t know if any money is owed or whether that person actually employs any of their members.
Mr Strong added “the only person who can get fined for not doing their compulsory work for superannuation funds is the small business person, the only person in the whole system who doesn’t get paid for their work is the small business person.
The fact that the largest union in Australia, the SDA, agrees that there is an unacceptable impost on employers who process union fee payments is proof that the same approach should be taken with superannuation. Collecting money for government in the form of GST, PAYG and other taxes is what is fairly expected of business. But a small business person should not be forced to pay money to private sector financial institutions without compensation.”
Mr Strong further added “These institutions are under-regulated and as a result are inefficient in their dealings with employers yet they still get a free service. We must bring fairness to super collection.
The recent announcements by the Revenue Minister Kelly O’Dwyer will hopefully make the system more accountable but if the funds are asked to pay for the services offered, as they would in any other commercial situation, we can expect immediate efficiencies and productivity gains.”