Search
Close this search box.

ASFA welcomes Government measures to increase SG compliance

Media Release 29 August 2017

29 August 2017

ASFA welcomes Government measures to increase SG compliance

The Association of Superannuation Funds of Australia (ASFA) today welcomed moves by the government to lift Superannuation Guarantee (SG) payment compliance and to provide funding for an Australian Taxation Office (ATO) taskforce.

ASFA CEO Dr Martin Fahy said the importance of superannuation for the retirement savings of employees was critical and unpaid super was having a big impact on many individuals (700,000 or more a year), often the most disadvantaged Australians.

ASFA has consistently raised the issue of SG non-compliance and options to improve compliance levels.

ASFA also has lobbied for improvements in SG payment through the removal of the $450 monthly threshold for SG eligibility that holds back retirement savings for so many Australians.

The announcement that the ATO will increase its proactive compliance case work activity by one-third is consistent with the recent call by ASFA for the ATO to be provided with an additional $10 million a year to conduct SG audits of businesses.

More regular reporting of superannuation contributions, if followed up by the ATO where it is apparent that an employer is in arrears with their payments, should lead to greater compliance by employers.

Dr Fahy said ASFA also welcomed the new recovery and penalty powers for the ATO. Employers who repeatedly fail to pay the SG entitlements of workers should face legal consequences from such actions, particularly if phoenix company methods are being used by company directors.

However, he said that more could still be done to improve SG compliance and he looked forward to seeing further details on the increased compliance activity by the ATO.

“As well as removing the $450 threshold, unpaid employee entitlements should be included for the purposes of the Fair Entitlements Guarantee. While increased compliance activity by the ATO will mean fewer workers will be short changed by unscrupulous employers, there will remain cases where a company goes into liquidation and there are no assets available to pay the entitlements of workers. As is the case with unpaid wages, there is a role for government to step in and assist with the payment of superannuation entitlements,” Dr Fahy said.

In addition, ASFA welcomes all businesses being brought into the Single Touch Payroll regime over the next few years and supports aligning SG payments with regular pay cycles.

For further information, please contact:
Teresa Mullan, Media Manager, 0451 949 300.

About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system so people can live in retirement with increasing prosperity.

Search
Close this search box.
Search
Close this search box.

Logged in as

Most recent