SG dodgers put under government spotlight

30-Jan-2017

By Sarah Kendell

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More details have emerged of the new government working group to tackle employer non-payment of the superannuation guarantee (SG), following industry fund lobby group Industry Super Australia research that revealed up to one-third of workers were denied their full entitlements each year.

In a statement released this week, Minister for Revenue and Financial Services Kelly O’Dwyer said the working group, comprised of representatives from the Australian Taxation Office, Treasury, the Department of Employment, ASIC and the Australian Prudential Regulation Authority, would provide a final report in March on the extent of non-compliance.

“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,” O’Dwyer said.

“The government takes superannuation guarantee non-compliance very seriously.”

O’Dwyer added that she looked forward to receiving the report, which would provide options to improve SG compliance to ensure employees were receiving their legal entitlements.

The working group came under fire this week in the Senate Economic References Committee’s inquiry into SG non-payment, where ISA public affairs director Matt Linden suggested its work could be ineffective due to a lack of consultation with super industry stakeholders.

“I am concerned that there is no-one in the industry with detailed knowledge of these issues that has been approached to contribute [to the working group]”, Linden said, when questioned by a member of the committee about the group’s set-up.

ISA and super fund Cbus research late released last year revealed that around 2.4 million workers were denied their full SG entitlements in the 2014 financial year, according to the latest ATO figures.

Workers affected by employer non-compliance missed out on an average $1489 worth of contributions over the course of the year, the report said.

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