BREAKING NEWS – CHANGES TO EMPLOYER OBLIGATIONS FOR SUPERANNUATION PAYMENTS AFOOT!
The Federal Government has announced it will seek to legislate a key recommendation of the Superannuation Guarantee Cross Agency Working Group. The legislation is set to close a loophole where “unscrupulous” employers to short change employees choosing to make salary sacrifice superannuation contributions into their super accounts.
Currently, employers can legally withhold their workers’ salary sacrifice superannuation contributions for up to four months, before transferring the money into their employee’s superannuation account.
Allegedly, some employers have reportedly been using the above loophole to reduce their compulsory 9.5% superannuation guarantee contribution by basing them on the salary less voluntary sacrifices. It was revealed in 2016 that up to 360,000 employees were impacted by this loophole!
The Minister for Revenue and Financial Services, Kelly O’Dwyer, said the Turnbull Government will introduce the Bill into Parliament to remedy this loophole.
“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 O’Dwyer.
The Turnbull Government is currently considering the remaining non-compliance recommendations made by the Working Group report to ensure that any measures progressed will improve compliance without unduly burdening employers.
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