IPA supports gov reintroduction of SG amnesty

IPA SG accountants government amnesty bill superannuation guarantee SG contributions andrew conway federal opposition ATO australian taxation office

9 October 2019
| By Chris Dastoor |
image
image
expand image

The Institute of Public Accountants (IPA) has commended the Government for reintroducing a bill for an on-off amnesty of historical superannuation guarantee (SG) underpayments, but says it needs bipartisan support.

Andrew Conway, IPA chief executive, said amnesty needed to be supported as it gave employers an opportunity to make good on post underpayments.

“With increased transparency around when employers make SG contributions on behalf of employees thanks to Single Touch Payroll (STP), it is an opportune time for employers to make good any outstanding SG liability without the full draconian penalty regime applying, which acts as a disincentive in coming forward,” Conway said.

The Federal Opposition previously didn’t support the amnesty on the basis employers shouldn’t be rewarded for non-compliance.

However, Conway said that despite wage theft should not be condoned, allowing amnesty would incentive employers to come forward and pay unpaid superannuation in full.

“We acknowledge that small businesses can sometimes experience cash flow issues, making them vulnerable when it comes to meeting their SG obligations by the required due date.  This amnesty gives them time to atone,” Conway said.

“Employers that do not take advantage of the one-off amnesty will face significantly higher penalties if they are subsequently caught.”

“In addition, throughout the amnesty period the ATO will continue its usual enforcement activity against employers.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 week 3 days ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

2 months 2 weeks ago

The corporate regulator has named its new chief executive, who is set to replace retiring interim CEO Greg Yanco in March....

4 weeks ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

4 weeks 1 day ago

New York-based firm CC Capital has bumped up its offer to stay ahead of rival bidder Bain Capital....

3 weeks 6 days ago

TOP PERFORMING FUNDS