Finance, HR - Government Targets Super Evaders
The federal government says it will crackdown on "unscrupulous" employers who hold back their workers' superannuation entitlements to boost their own cash flows.
The government this year will introduce legislation to close a loophole that some employers have been using to reduce their compulsory 9.5 percent super contributions by basing them on the salary less voluntary sacrifices, a questionable move that impacts 360,000 workers. The legislation was recommended by the Superannuation Guarantee Cross Agency Working Group.
"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 Kelly O'Dwyer, the Minister for Revenue and Financial Services.
The crackdown is welcomed by the group Industry Super Australia (ISA), which insists that a third of Australian workers were losing AU$3.6 Billion a year.
"Amending the law to require employers to pay super more frequently - at least monthly but ideally at the same time as wages - is essential to stop super payments being used for business cash flow," said Matt Linden, ISA's head of public affairs. "Without taking these extra steps millions of Australians will continue to be short-changed billions in super, with the Government having to pick up the tab with higher age pension costs."