SMSFs have an advantage over other types of superannuation funds when it comes to monitoring employer contributions, according to the SMSF Association.
Australian employees may be missing out on billions worth of employer superannuation contributions, according to recent research released by Industry Super Australia and Cbus.
SMSF Association CEO Andrea Slattery said this was far less likely to be an issue for SMSF members, who can ensure that they receive all their employer contributions due to their direct involvement with their super fund.
“SMSF trustees and members have direct access and knowledge of their fund’s bank account, allowing them to directly monitor employer contributions to their SMSF,” she said.
“Based on significant research and empirical evidence, SMSF members are generally more engaged with the direct administration and management of their superannuation, and as a consequence are more aware of the contributions being made to their fund.
“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. And if there is an issue, it is usually identified very quickly.”
A Senate committee is currently conducting an inquiry into the non-payment of Superannuation Guarantee.
“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,” Slattery said.