Government Super Guarantee reforms

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Government Super Guarantee reforms

The Government has announced a package of reforms to give the ATO near real-time visibility over superannuation guarantee (SG) compliance by employers.

The ATO will have additional funding for a SG Taskforce to crack down on employer non-compliance. The package includes measures to:

* require superannuation funds to report contributions received more frequently (at least monthly) to the ATO;

* require employers with 19 or fewer employees to transition to single touch payroll (STP) reporting from 1 July 2019;

* improve the effectiveness of the ATO’s recovery powers to ensure unpaid superannuation is better collected by the ATO and paid to employees’ super accounts; and

* give the ATO the ability to seek court-ordered penalties in the most egregious cases of non-payment, including employers who are repeatedly caught but fail to pay SG liabilities.

Editor note: Following extensive consultation when Single Touch Payroll (STP) was originally announced, it was decided that employers with 19 or fewer employees would not be required to comply.  Given the backflip here, the business community will be hoping the Government does not introduce compulsory real-time payments of SG and PAYG withholding, as well as real-time reporting.

For more information, please email or call David Howells, on (02) 4455 5333.

About the Author:

David is passionate about helping clients improve their businesses and achieve their goals. He is an expert Auditor who also specializes in Business Advisory, Strategic Tax Planning, and compliance of Not-For-Profits & Self-Managed Super Funds.Contact David via email or call 02 4455 5333.