The Government will be allocating $19.2million over four years to the Australian Taxation Office (Tax Office) to inquiries about compliance with the Superannuation Guarantee arrangements. The Tax Office will now be able to provide enhanced services to employees with concerns about the payment of employer superannuation contributions required under the Superannuation Guarantee arrangements. This will be achieved by addressing the backlog of inquiries and providing more timely completion of future investigations. The ATO will also be able to provide employees with more advice on the progress of Superannuation Guarantee inquiries.
Improving the timeliness and quality of Tax Office investigations into superannuation payments made by an employee’s past or present employer will significantly reduce the level of frustration that employees may have with the administration of the Superannuation Guarantee system.
Supporting Information
Why is this important?
- The Tax Office’s inability to finalise investigations within a reasonable timeframe and provide information to employees on the progress of investigations represent significant community irritants around the administration of the SG system.
Who will benefit?
- Employees with concerns regarding their employer’s payment of SG.
What funding is the Government committing to the initiative?
- Funding of $19.2million over four years is being allocated to Tax Office, including $5.6million in 2006-07.
What have we done in the past?
- In the 2002-05 ATO Output Pricing Agreement (OPA), the ATO agreed to improve employer compliance though enhanced data matching to determine SG shortfalls, client communication, a possible amnesty for SG charges and the issuing of default assessments to employers. The ATO received an annual funding increase of $3million over the period of the OPA specifically for enhanced data matching activities. No additional funding was provided for the remaining initiatives.
- In the 2004-05 Budget, the ATO received additional departmental expense funding of $49.4 million over four years for superannuation compliance. Some of the activities that this money funded should have indirectly assisted the ATO in administering the SG system.
When will the initiative conclude?
- Funding for the initiative has been allocated until 2009-10.