Govt pushes forward with employer, super crackdown
Employers are being warned there is no escape from having to fulfil their full superannuation guarantee obligations as the government seeks to close a loophole used by unscrupulous employers to short-change employees.
Minister for Revenue and Financial Services, Kelly O’Dwyer, said the government will introduce a bill into Parliament this year that will ensure an individual’s salary sacrifice contributions do not reduce their employer’s superannuation guarantee obligation.
A report by Industry Super Australia last year revealed that the salary-sacrifice loophole affected 360,000 Australians, costing them up to $1 billion in lost retirement savings.
“If Australians are to continue to have confidence in the integrity of the superannuation system, we must ensure employers are paying workers their full entitlements, whether they are wages or superannuation,” said Ms O’Dwyer.
The government has also welcomed practical recommendations from the report of the Superannuation Guarantee Cross‑Agency Working Group, Superannuation Guarantee Non‑compliance, aimed at improving employer’s compliance with their superannuation guarantee obligations.
The working group, comprising senior representatives from the ATO, the Treasury, the Department of Employment, ASIC and APRA, has been strengthening cross-agency collaboration to improve the superannuation system for Australians.
A key outcome has seen the ATO increase its focus on superannuation guarantee compliance and improve information sharing across agencies.
Ms O’Dwyer also said the government was carefully considering the remaining recommendations made by the working group report to ensure that any measures progressed will improve compliance without unduly burdening employers.