The Australian Government must rethink the superannuation collection system for small business. By paying super direct to small business employees or including it in PAYG, we would increase productivity, competition and choice while improving the mental health of small business owners.
Super is an important investment in our nation's future, but we shouldn't be making the hard working and stressed small business owner the super pay clerk. By doing this, we are creating incredible amounts of paperwork and stress for the small business owner trying their best to build a better business so we have the jobs Australians need.
How would it work? There are two ways: either the small business employers would directly pay their superannuation contribution amount to the employee who can then choose who to direct their super to; or the superannuation funds can be included in PAYG payments to the ATO then the ownber of the funds (the taxpayer), the ATO and the funds themselves could sort it out
Productivity By removing the responsibility to directly pay superannuation for small business, we will increase their productivity, instead of spending time calling super funds to fix issues that are not of their making.
Competition We need greater competition between superannuation funds to improve outcomes for working Australians. The fact that big business and unions dominate the boards of super funds is concerning. We have seen with the recent deals between the SDA and big business that they force employees to use the retail super fund, there is no choice.
Choice Many employees follow their employers preferred super fund without considering which one is best. By ensuring that the employee has the freedom to directly pay their super, we create a greater awareness and choice of fund.