17 May 2013
For Immediate Release
Contacts: Mr Peter Strong
Amanda Lynch 02 6282 4277
Confidence building for small business people.
Amanda Lynch, pilule Chairman of COSBOA said today “We have always been concerned that the increase in superannuation guarantee from 9% to 12% would impose more cost on small businesses and provide another drain on our confidence. An increase in superannuation is actually a pay increase which will come from the pocket of the person who owns a business.”
COSBOA knows that small business people are tired of increases in costs and compliance that is imposed by governments. The superannuation processes and costs are complex and time consuming, provides no productivity gains and does not add to businesses’ capacity to survive, thrive, and if desired, grow and employ more people. COSBOA is also pleased to see small business would be included in the Treasury portfolio in an Abbott government, a place of importance for the economy.
Peter Strong, Executive Director of COSBOA stated “Small business people are tired of having to do the work of other businesses, in this case superannuation funds, for no financial return and indeed we are fined if we do not do this unpaid work. One of the best policies of Tony Abbott is not just delaying increases to the superannuation guarantee but he also proposes to remove us from the collection process altogether and include superannuation in PAYG payments. That is an immediate productivity gain for business which also creates enormous savings for the superannuation industry and gives the owner of the superannuation fund, the worker, greater say in what happens to their retirement funds. Everyone wins under this policy.”
Ms Lynch added ”The delay in the increase of the superannuation guarantee gives the government agencies and the superannuation funds time to change their approach to collecting superannuation and get their heads around the word efficiency and what that means in the real world of small business. Under the current proposals businesses have to change their payroll software on a regular basis for the next 6 years as superannuation increases from 9% to 12% in small increments; this is a compliance requirement that is ridiculous and unworkable. We need to put super into PAYG and then compliance is decreased and complexity is removed.”
Superannuation and other issues important to the small business community will be discussed at the National Small Business Summit in Brisbane in July 2013.