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Superannuation Collection Process Akin to a Feudal System


We must address the scam that is superannuation collection by removing employers from the process and also supporting the amnesty for those who are late with payments of their employees’ superannuation.

Peter Strong, CEO of COSBOA, stated ‘there is a Senate inquiry into the government’s recent announcement providing an amnesty for superannuation payments. The amnesty is a good decision that will provide an opportunity for honest small business people to pay their debts without being fined or punished for their efforts. Many small business people have been used and abused by this niche ruling class who are the directors of superannuation, particularly industry funds, and who should know better. These funds have lined their pockets with money from our employees who have often been forced to pay into funds NOT of their choice. Our employees lose that money to the fees and banalities charged by these feudal-like lords.”

COSBOA has been calling for a major change to the superannuation collection process for years. The current process provides sinecures for directors on superannuation boards. In these positions they work little but get paid a lot. Their pay is collected by small business people who are unpaid for their role yet are the only individuals who can get fined for not doing this unpaid work.

Mr Strong added “the unions and funds also want employers to pay superannuation fortnightly instead of the current arrangement, where small businesses can pay quarterly. If this happened, the the number of bad debts would rise, and the greatest winner would be the industry funds. These funds own a debt collection agency that distributes its profits to non-superannuation entities - it is a disgraceful scam that steals from employees and employers alike. These funds resist the change we recommend to collection processes as it would kill off their income. Our suggestion, placing superannuation in PAYG, would save employees money but for some reason (called greed) the unions reject this. Do they care for themselves or the worker?”

-ENDS-


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