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

 

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2020 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.