Fund ATO to crackdown on SG non-payment: ASFA

The Association of Superannuation Funds of Australia (ASFA) has called on the Federal Government to better fund the tax office to audit businesses for unpaid superannuation entitlements.

It has also called for super to be included in the definition of unpaid employment entitlements under the Fair Entitlements Guarantee.

ASFA estimated it would cost up to $150 million a year to include unpaid superannuation guarantee (SG) payments in the Fair Entitlements Guarantee administered by the Australian Government, with up to 55,000 affected individuals set to benefit annually from the initiative.

Related News:

ASFA chief executive, Martin Fahy said the association was calling for an additional $10 million a year for the next four years to aid the Australian Taxation Office (ATO) in tracking employers failing to pay employees their SG.

“People need that money to live better post-work and the entire Australian community benefits when the right thing is done for employees. Unpaid super means a drag on age pension expenditures by the government. That is a cost to everyone.”

ASFA referred to the Australian National Audit Office (ANAO) figures, which found audits undertaken by the ATO had more than a 70 per cent success rate in identifying unpaid super obligations.

Fahy said non-payment of super affected 690,000 employees or 6.5 per cent of the workforce.

ASFA also urged the Government to improve SG payment outcomes in cases of insolvency and bankruptcy. ATO figures showed about 50 per cent of super debts related to insolvency, while Australian Securities and Investments Commission (ASIC) data showed non-payment of super was more common in accommodation and food services, construction, business and personal services, retail trade and transport industries.

Related Content

Aurora appoints new COO

Aurora Funds Management Limited has expanded its management team with a new appointment of Ben Norman to the position of the company’s chief operati...more

RBC picks up key custody mandate

Custodian, RBC Investor & Treasury Services has picked up a key mandate.The company, part of Royal Bank of Canada, announced this week it had been...more

Suncorp admits super data breach

Some members of Suncorp’s Brighter Super product have been told their personal information may have been made temporarily available to other members...more



Add new comment