Superannuation Guarantee non-compliance is a very serious issue. Employers who do not pay employees their superannuation entitlements are breaking the law.
The Government has established a new multi-agency working group to investigate and develop practical recommendations to deal with superannuation guarantee non-compliance. The working group has been meeting since December last year.
Chaired by the ATO and comprising senior representatives from The Treasury, the Department of Employment, ASIC and APRA, the working group will identify the drivers of non-compliance, develop ways to improve compliance and policy options to ensure the law remains fit for purpose for Australia’s $2 trillion superannuation system.
The working group is due to provide an interim report to the Minister at the end of this month, with a final report due in March 2017.
“The Government takes Superannuation Guarantee non-compliance very seriously,” Minister O’Dwyer said.
“I look forward to receiving the report of the working group, which will provide options to improve Superannuation Guarantee compliance to ensure employees get the superannuation they are legally entitled to.”
The Government is also continuing its work with the ATO to protect employees from being ripped off by preventing the practice of deliberately liquidating a company to avoid paying creditors, including employee entitlements, through the Serious Financial Crimes Taskforce and the Phoenixing Taskforce.