SMEs balk at new super reporting obligations but welcome Government reform

Small business is lobbying the Government to reconsider a new regulation included as part of the MySuper reforms that will make SMEs publish on payslips when employees have had funds deposited into their super accounts.

The complaint highlights an ongoing dispute between SMEs and the Government over the role businesses must play in distributing Government payments, particularly due to the introduction of the Paid Parental Leave Scheme.

“The Government will ensure workers get better information about when their superannuation is being paid,” assistant treasurer Bill Shorten announced yesterday as part of a suite of super reform announcements.

“Employers will disclose on payslips when contributions are due to be paid. This will provide an early warning if superannuation entitlements aren’t being paid.”

The Government argues that a 30-year-old worker on an average wage can expect an extra $40,000 from the reform, which include the establishment of a default MySuper account.

But while small business is generally supportive of the new scheme, Council of Small Business of Australia chief Peter Strong says it rejects the new regulation that will make small businesses responsible for including details on payslips regarding super payments.

“I’m in discussion with the minister’s office right now, and he’s quite aware of our opinion that this is going to make things more difficult for small businesses.”

“I feel if they take us out of the process, this whole thing will become more efficient and these other reforms – which are excellent – can then proceed.”

Strong explains that putting details of super payments on payslips isn’t easy, especially when paying super is part of cashflow management.

“We should also remember that super has been imposed on businesses for the last 20 years, we didn’t ask for it. Sometimes you pay earlier than you think because you have the opportunity to, and it isn’t always regular.”

“It also gets complicated because many super funds don’t keep good records, and if we saw we’ve paid, they might say we didn’t. This is where the collection of funds becomes more complicated.”

Small businesses have been timid to accept new reporting obligations from the Government, especially after the introduction of Paid Parental Leave which mandates SMEs distribute payments to employees.

“All it is is just more red tape,” says Strong. “There needs to be less compliance.”