Media attention has focussed recently on unpaid super and government moves to increase penalties for non-payment of the Super Guarantee to employees. Also on the cards is proposed legislation giving the Australian Taxation Office (ATO) enhanced enforcement powers.
The moves come off the back of figures that show around 2.76 million or almost one third of Australian workers eligible for super are missing out on some or all of their entitlement*.
So what does this mean for employers? If you’re one of the majority who do the right thing, it could be taken as positive reinforcement of your actions. And for employers with unpaid super, it’s a bit of wake up call.
Under the Super Guarantee, employers must contribute 9.5 per cent into the super account of every worker over the age of 18 earning $450 a month.
Currently, employers who don’t pay the Super Guarantee on time face fines and penalties. New legislation introduced to Parliament this month up the stakes to potential jail terms, a measure of how important the issue is.
We’ll keep you informed of developments in this space, and in the meantime, we’re here to talk about or answer any questions you may have about your super payments on 1300 300 273.