Proposed Federal Government changes to Australia's workplace relations system are set to create uncertainty in the minds of employers about their superannuation obligations.
The Government is seeking to introduce a new national workplace relations system and a far simpler regime of awards and agreements - including the removal of superannuation as an 'allowable matter'.
While it is likely to be 'business as usual' in the short term, (the new Bill allows for existing arrangements to remain in place until June 2008 ) there is every likelihood that superannuation will gradually disappear from awards and agreements in the future.
Under the Federal Government proposal, any incorporated business will have an obligation under SG legislation to make 9% superannuation contributions into any complying fund nominated by an employee.
According to Tasplan General Manager Neil Cassidy, this may come as a surprise to some of the businesses which had negotiated agreements with their workforce.
"One of the attractions of a workplace agreement for employers has been the fact that parties may have agreed on having only a limited number of funds into which super contributions can be made." Cassidy said.
"This has had the benefit for employers of helping to reduce the administrative burden associated with superannuation."
According to Cassidy, it is likely that employers will no longer be able to shelter from Choice through provisions in agreements and state awards restricting the number of super funds. Medium to large businesses should brace themselves for the possibility that greater numbers of employees may have access to choice.
Some media commentators have dubbed the Government's national workplace relations scheme as 'Choice Mark 2' and there is a view that some businesses may be concerned about such an unforseen side-affect of the Government's workplace reforms.