26/08/2013

The Federal Government announced at the end of July this year proposed amendments to allow small businesses access to the Superannuation Complaints Tribunal (SCT).  The changes are intended to address the gap in the existing dispute resolution systems available to businesses when making payments and other arrangements on behalf of their employees with superannuation funds.  

Superannuation Complaints Tribunal – What is it?

The SCT has the power to deal with complaints about superannuation but does not have unlimited jurisdiction to deal with all superannuation-related grievances.  Complaints can be lodged about the decisions and conduct of:
•    Trustees of a regulated superannuation fund (other than an SMSF or approved deposit fund).  
•    Life companies as providers of immediate and deferred annuities.
•    Providers of retirement savings accounts.

The SCT currently can hear complaints from a person who is dissatisfied with a superannuation fund trustee, retirement savings account provider or annuity policy.  The person is usually required to be a member, beneficiary or someone with a claim over a benefit held/payable.  

Other restrictions on complaints include those subject to court proceedings, outside prescribed time limits or those that have not first been made to the Fund through their internal complaints arrangement.

The SCT can inquire into a complaint and try to resolve it by conciliation; however, if conciliation is unsuccessful, the Tribunal can conduct a formal review of the complaint and issue a determination.

Parties have the right to appeal a Tribunal's determination but this is limited to questions of law and must be made to the Federal Court under section 46 of the Superannuation (Resolution of Complaints) Act 1993.

Impact of the New Amendments

The changes, if made, will provide small businesses with access to the SCT similar to that currently available to members and beneficiaries of APRA-regulated superannuation funds.

Assistant Treasurer David Bradbury stated that the amendments would ensure “that small businesses are offered similar access to [dispute resolution] with superannuation providers as they are for disputes with other financial service providers”.

The changes will provide small businesses an alternative from private legal action in order to address disputes with superannuation funds.  Generally this will apply to small business as employers and the contributions made to large retail or industry funds on behalf of their employees.

Changes don’t apply to SMSFs

The SCT cannot handle a complaint in relation to SMSFs.  Small businesses will still have to deal directly with the SMSF should a dispute arise and address this directly with the SMSF trustees/members.  

Lodging a Complaint

Complaints are categorised by the SCT into three types: 'Death benefit' complaints, 'disability benefit' complaints and 'all other' complaints.

To lodge a complaint with the SCT information must be provided in the Registration Complaint Form (hardcopy) or an online Complaint Form.  Both of these forms, as well as further information on the categories for complaints are available on the SCT website at:

www.sct.gov.au/pages/make-a-complaint/lodging-a-complaint

The proposed measures to allow small businesses access to this dispute resolution process are currently undergoing industry consultation, and no timeframe has yet been provided for when the changes are expected to come into effect.

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222.