The SMSF Association has endorsed the decision by the Government to provide the Australian Tax Office (ATO) with additional funding for a Superannuation Guarantee Taskforce to ensure employers comply with their Superannuation Guarantee (SG) obligations.
The Minister for Revenue and Financial Services, Kelly O’Dwyer, announced yesterday a crackdown on employer non-compliance with the SG, saying those who do so “are acting illegally and it won’t be tolerated”.
SMSF Association CEO John Maroney says the organisation stressed the importance of giving the ATO “adequate resources” to enforce SG compliance in its recent submission to the Government on its SG integrity measures.
“We welcome the fact that the Government is building on the integrity measures announced already that remove loopholes around salary sacrifice contributions and employer SG obligations.
“Ensuring employers are paying the correct superannuation to their employees is critical to give all Australians the opportunity to reap the full benefits of the superannuation system so they can enjoy a dignified and secure retirement.”
Maroney says the fact that an estimated $2.8 billion in SG payments go “missing” each year due to employer non-compliance highlights the magnitude of the problem, and why extra funding to the SG Taskforce is justified.
“It’s the Association opinion that measures such as the frequent reporting of SG contributions, Single Touch Payroll, and increased ATO powers will help lower this $2.8 billion in missing superannuation payments.
He adds that the Association strongly endorses the key recommendations in the Superannuation Guarantee Gap Senate Inquiry Report. “We encourage the Government to continue examining ways to safeguard and modernise the SG.”