The Government says it is acting on Superannuation Guarantee non-compliance, in part by establishing a multi-agency working group to investigate the issue.
A statement from Minister for Revenue and Financial Services, Kelly O’Dwyer, said that SG non-compliance is a “very serious issue.”
“The Government takes Superannuation Guarantee non-compliance very seriously.”
“Employers who do not pay employees their superannuation entitlements are breaking the law.”
The Government has established a “new multi-agency working group to investigate and develop practical recommendations to deal with superannuation guarantee non-compliance”.
This announcement comes on the same day a Senate inquiry is holding a public hearing into SG non-payment, with the ATO and Industry Super Australia giving evidence.
Minister O’Dwyer said the working group has been meeting since December 2016. The issue of SG non-payment was referred to the Senate Economics References Committee for inquiry on 1 December 2016, following a motion from Labor Senator Katy Gallagher.
Minister O’Dywer said: “Chaired by the ATO and comprising senior representatives from The Treasury, the Department of Employment, ASIC and APRA, 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.”
The working group is due to provide an interim report to the Minister by the end of January and a final report in March 2017. The Senate inquiry is due to give its report by 22 March 2017.
“I look forward to receiving the report of the working group, which will provide options to improve Superannuation Guarantee compliance to ensure employees get the superannuation they are legally entitled to,” Minster O’Dwyer said.