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Compliance

SMSFA backs extra SG taskforce funding

The SMSF Association has applauded the federal government’s decision to provide the ATO with additional funding for a Superannuation Guarantee Taskforce aimed at cracking down on employers failing to comply with their superannuation guarantee (SG) obligations.

Revenue and Financial Services Minister Kelly O’Dwyer yesterday announced a further package of reforms, building on legislation already announced to close a legal loophole used by unscrupulous employers to short-change employees who make salary sacrifice contributions to their super.

The new taskforce will enable real-time visibility over SG compliance.

SMSF Association chief executive John Maroney said the peak industry body had 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.

“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 said.

He said the fact an estimated $2.8 billion in SG payments went “missing” each year due to employer non-compliance highlighted the magnitude of the problem and why extra funding for the taskforce was 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 noted, adding the industry body strongly endorsed the key recommendations in a Senate inquiry report on the SG gap.

“We encourage the government to continue examining ways to safeguard and modernise the SG.”

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