Australia - Labor calls for simplification of super choice

The Labor party has called on the government to simplify super choice after a survey found four out of 10 employers failed to meet the July 28th deadline for handing out super choice forms.

The Superannuation Trust of Australia survey also revealed 20 per cent of employers had not chosen a default fund by the start date of July 1st and more than one third of employers were unaware that giving financial advice is illegal.

Shadow minister for superannuation, Nick Sherry, claimed the Liberal government was “out of touch” in imposing a new compliance burden on business. He maintains the super choice regime represents a “costly red tape burden” for employers including ongoing record keeping, payments to multiple super funds and legal liability for advising employees on which fund to choose.

Source: Global Pensions