Employer superannuation obligations should be standardised and simplified. Regulation and penalties should be more equitable and appropriate to contemporary transactional processes and practices.
The current system of compliance and penalty neither supports employer compliance with superannuation guarantee laws nor delivers it. The framework must be changed to better encourage and facilitate timely contributions and minimise losses when contributions are not fully made on time.
Our Policy Objectives:
- Superannuation legislation that supports and facilitates timely contributions and minimises or rectifies member losses when contributions are delayed or misallocated.
- Standardised rules, data and payment requirements and processes and corrections procedures.
- Standardised reporting and records requirements.
- More consistent and simpler choice obligations.
- Removal of contributions and default fund obligations from awards.
- Reframe superannuation guarantee contributions, obligations and penalties to focus on electronic enrolment, data and contributions transactions, and remedying member losses by separating penalty from remedy where there is delay and to reduce the emphasis on penalty.
- Remove arbitrariness from the guarantee penalty system by providing greater discretion and fairer treatment of employers that are unable to comply in circumstances they do not control.
- Remove award related superannuation provisions from the Fair Work Act and amend modern awards accordingly.
- Amend the enterprise bargaining provisions in the Fair Work Act to prevent new enterprise agreements from negating choice.