Hot Issues
spacer
Our Advent calendar for 2017
spacer
Australia's vital statistics
spacer
Made in Albania? How globalisation is creating challenges for Chinese policymakers
spacer
For the young it a question of engagement
spacer
Address Under-insurance at Personal Finance Level - Global study
spacer
Realism vs reality - working part-time as retirees
spacer
SMSFs warned on ‘ticking time bomb’ with outdated deeds
spacer
Statutory wills are underutilised in estate planning
spacer
Resources on our site to help you, your family and your friends.
spacer
Calls to Review ASIC's Definition of Lapse Insurance
spacer
Paperwork bungles lead to $38k in payments
spacer
Self-employed? Don't miss out on super
spacer
Australian Dietary Guidelines and healthy eating chart (PDF)
spacer
Big concessions looking likely for transfer balance limit: ATO
spacer
Raft of superannuation measures enter Parliament
spacer
US Fed policy: Normalisation begins
spacer
What the gig economy may mean for your super
spacer
Powerful Budgeting, cash flow and Super Tools available on our site.
spacer
Australia's leading causes of death - ABS
spacer
Government introduces first home scheme laws
spacer
Are young investors wasting their youth?
spacer
ATO granted super enforcement powers
spacer
The great Australian (retiree) dream
spacer
ATO to release further guidance on reserves
spacer
A real-world benchmark for SMSF performance
spacer
How is your super going, ready for retirement?
spacer
Our 'hardest' SMSF tasks
Article archive
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
ATO granted super enforcement powers

The government has announced a number of reforms designed to give the ATO more powers to oversee and enforce superannuation guarantee payments.

 

 

Minister for Revenue and Financial Services Kelly O’Dwyer said the new powers will provide “near real-time visibility” on employers’ superannuation guarantee (SG) compliance and enable the regulator to better enforce compliance through a new taskforce.

“The package builds on legislation already announced to close a legal loophole used by unscrupulous employers to short-change employees who make salary-sacrifice contributions to their superannuation,” she said.

Other measures announced as part of the reforms include a requirement that super funds report the contributions they receive at least monthly, strengthen director penalty notices, allow the ATO to pursue court-ordered penalties “in the most egregious cases of non-payment”, and the roll-out of the Single Touch Payroll system.


“Employers who deliberately do not pay their workers’ superannuation entitlements are robbing their workers of their wages. This is illegal and won’t be tolerated,” Ms O’Dwyer said.

“The Turnbull government is taking action to safeguard and modernise the SG so employers can’t hide from their legal duty. We will give all Australians confidence that the superannuation system is working in their best interests.”

The reforms have been met with support from industry advocacy body Australian Institute of Superannuation Trustees (AIST), who said employer non-compliance costs employees "billions of dollars" in retirement savings.

“Even on the conservative figures released today, the ATO have confirmed that there is a massive problem of underpayment that has to be addressed," said AIST chief executive Eva Scheerlinck.

“Superannuation is deferred wages and, in a compulsory super system, members must receive their full entitlements. Importantly, this package of reforms includes strengthening employer penalties for noncompliance and enhancing the ATO’s power to deal with repeat offenders.”

However, Ms Scheerlinck said more reforms needed to be implemented, noting that currently employers are only required to pay their employees' contributions on a quarterly basis, and that making these payments more frequent would also strengthen the system.

“Improved payslip reporting would help employees keep better track of their super payments by providing them with the ability to check that their super has actually been paid into their fund," she said.

"We believe this measure would have a significant impact for members. We will work with the government to bolster the efficacy of the package in this way.”

 

BY STAFF REPORTER Wednesday
30 August 2017
investordaily.com.au