Personal liability for superannuation guarantee (SG) appears to be of little consequence to directors who find themselves in trouble, according to the Australian Institute of Credit Management (AICM).
In a submission to the Senate Economics Committee inquiry into superannuation guarantee non-payment, the AICM non-reporting of (SG) obligations was a common method employed by businesses experiencing insolvency issues.
Further, while companies may cease payment of the SG before most other creditors this is generally not evident until a formal insolvency appointment, meanwhile creditors have continued to provide credit to these businesses unaware of the breach of a fundamental obligation, it said.
The submission said that due to t…
Read the full article at: http://www.superreview.com.au/news/superannuation/do-insolvent-directors-really-care-about-sg
