A warning has been issued to the business sector following further changes to laws affecting the payment of superannuation contributions.

The Federal Government has amended the Workplace Relations Act to make it a requirement for all incorporated business to offer employees a choice of superannuation fund from 1 July 2006. It estimates that up to 500,000 additional employees will be able to choose a super fund under these amendments.

Tasplan General Manager, Neil Cassidy has urged incorporated businesses to consider whether they may be affected by the new law.

According to Cassidy, businesses operating under a state award where a super fund is named had previously been exempted from offering a choice of superannuation fund.

“From 1 July 2006, incorporated businesses will be required to offer choice – irrespective of whether they have been observing a state award which prescribes a superannuation fund/s.

“It could be quite disconcerting for an accountant or paymaster to ignore a provision in an award simply because that business happens to be incorporated.” Cassidy said.

“The really confusing thing is that businesses operating under certain workplace agreements ( what the Commonwealth now calls a preserved state agreement or PSA) will not be affected – regardless of whether they are incorporated or not.” Cassidy said.

Eligible employees in affected companies will now be covered by the Federal workplace relations system under an arrangement known as the ‘notional agreement preserving state awards’(NAPSA).

“It’s simply a case of the Federal Government being able to make new law to regulate incorporated employers but not currently having the power to impact on unincorporated businesses operating under state awards or agreements.” Cassidy said.

Cassidy urged incorporated businesses not currently offering choice of superannuation to consult their employer organisation or make contact with the relevant department in their state or territory.

“For some employers, confusion attending the new regulatory regime was now such that the Commonwealth should seriously consider a moratorium on prosecution for non-compliance where an employer can demonstrate that it has been making super contributions in good faith” Cassidy said.

Employers affected by the new measure will have to give an employee who commences work on or after 1 July 2006 a Standard choice form. Existing employees can request a form at any time after that date.