Owners feel super burden

AUSTRALIA’S main small business lobby group says owners have been bullied and threatened by superannuation funds for years.

In its submission to the financial services Royal Commission, the Council of Small Business of Australia said it had for many years been concerned about the collection process. The group renewed its call for a restructure of systems for collecting super within small businesses.

Chief executive Peter Strong said business owners, often superannuation poor themselves, were burdened by regulation to collect and administer super payments for their staff, a role that should be part of the Pay As You Earn tax regimen.

“We believe the collection system is flawed and is open to corruption and abuse,” the submission said. “The administration of the funds involves bullying and threatening of innocent small business people when that is unnecessary.”

Mr Strong said owners frequently had little super because what spare cash they had was reinvested in their business. He said employers were responsible for selecting default super funds for their workers when this process would be better carried out by the employees. Mr Strong said it also would save superannuation funds substantial administration costs.

The next round of commission hearings starts in Melbourne on August 6, with the super industry in focus.