The ATO and Industry Super Australia will today appear before the first public hearing of the Senate inquiry into the non-payment of Superannuation Guarantee.
The Senate Standing Committee on Economics started the inquiry into the impact of Superannuation Guarantee (SG) non-payment in December 2016. It is due to report in late March 2017.
“Considered long overdue, the Senate inquiry comes as access to the Age Pension tightens in the expectation that Australians will be able to provide for themselves as the super system matures,” says Industry Super Australia.
“The inquiry will go beyond individual impacts to also consider how unpaid SG robs government of vital tax revenues and puts businesses that do the right thing at a competitive disadvantage.”
“It will investigate the accuracy of official information and data; the effectiveness of monitoring and recovery; and the appropriateness of responses to complaints and tip-offs.”
In 2016 Industry Super Australia released research indicating one-third of workers are not receiving their full superannuation entitlements. The industry body has also started a Stop Unpaid Super campaign.
An ATO submission to the inquiry, ahead of the public hearing, says that limitations on data provided by third parties restricts the ATO’s ability to identify employers not complying with the SG requirements.
“The main limitations are the lack of reporting of ‘ordinary times earnings’ information from employers and that employers who make Super contribution to employees cannot consistently be identified from member contribution summary data,” says the ATO submission.
However the ATO expects SuperStream and Single Touch Payroll will make it easier to identify SG underpayment.
Submissions to the Senate inquiry close 17 February 2017.