The CBUS industry superannuation fund recently attacked the Small Business Minister Bruce Billson who is seeking to lower fines for small business people who pay the superannuation guarantee payments late. CBUS wants the fines raised.
Small business people collect over 30 billion superannuation dollars every year and are forced to for no financial return for our time or effort, cialis and then unions and many big business associations fight over who gets some of the money in the form of director’s fees.
Small business people are the only people in the superannuation system who do not get paid for what they do and are the only individuals who can be fined for not meeting their superannuation requirements.
We are major stakeholders in what should be an efficient superannuation industry and we want a more efficient system. The inefficiency is in the process imposed and the paperwork forced on us by the industry superannuation funds.
There are several ways to increase the payment compliance.
Option A is to increase the fines to say $250,000. Then no one in their right mind would employ anyone and the problem would be solved. Better still just to be sure make the fine $1 million.
Option B is to pay the employer for the time they spend doing the work of the superannuation funds, I suggest employers keep 10% of all funds collected up to a maximum of $10k. Then like everyone else in the system they get paid for their work.
Option C (the obvious and best option) change the payment process. Genius! Let’s take those rascally employers out of the process. There are several ways to do that.
Option C.i Make the person who owns the money, the employee, pay it into a superannuation fund and if they don’t fine them, it is their money after all.
Option C.ii Place superannuation into the tax system. When an employer remits PAYG payments to the tax office it would include the superannuation payments. Then the person who owns the money can let the ATO know which fund to send their money. Easy, takes employers out of the system; more certainty for employees and the funds.
The added bonus of putting superannuation into PAYG is that the small business employer can concentrate on the business, adding to job security; and be able to spend more time on safety which is of paramount importance.
CBUS in particular must be supportive of a system that would add to certainty for employees and to safety.
Finally – Bruce Billson again and again proves that he gets reality and he gets the way people behave and he works with that. The biggest and most dominant businesses and unions have lost that capacity to understand the best way to do things is to work with the people involved.