Jail for employers not paying Super Guarantee Bill doesn’t go far enough

A Government Bill, which may become an Act in early 2019, has been welcomed but also criticised for not doing enough about unpaid superannuation.

The Treasury Laws Amendment (Measures No.4) Bill 2018 could result in employers going to jail for not paying Super Guarantee they owe. The Bill passed the Senate last week, but as it was amended it needs to go back to the House of Representatives. Parliament has risen for 2018, with the first sittings scheduled for February 2019. Given the amendments were moved by the Government its passage seems likely, time allowing – there are few sitting days and the Budget has been brought forward. Read more...

Jail for employers not paying super guarantee may pass Parliament today

Legislation which could result in employers who don’t pay Superannuation Guarantee being sent to jail may pass Parliament today – the last sitting day for 2018.

Update: The House of Representatives has adjourned, seemingly without voting on the amendments – so the Bill has not yet passed.

The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 has passed both Houses of Parliament, but as it was amended in the Senate it will need to return to the House of Representatives. The amendments were moved by the Government and so would likely be agreed to in the House, but that depends on there being time for a vote. Read more...

Superannuation Bills largely stalled in Senate ahead of winter break

With Parliament having risen for the long winter break many of the Government’s superannuation Bills remain stalled in the Senate, with some not even being debated yet in 2018

ASIC fee-for-service Bills

The Bills to change ASIC towards a fee-for-service model have passed the Parliament. In part the Bills will lead to increases in the fees for SMSF Auditors, in some cases substantial fees. The actual level of the fees will be set in regulation, which Minister for Revenue and Financial Services Kelly O’Dwyer said would be made “shortly”. Read more...

Bill to increase Super Guarantee underpayment penalties passes House

A Bill to increase the penalties for employers not complying with their Super Guarantee obligations could become law by the end of the week.

The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018, which increases penalties for SG non-compliance to include potential jail sentences, among other changes, has passed the House of Representatives.

The Bill also extends Single Touch Payroll – which involves reporting information to the ATO at the same time as payroll – to small employers (under 20 employees). Read more...

Prison sentences for Super Guarantee non-compliance “not justifiable”

Prison sentences for failing to meet Superannuation Guarantee obligations are “not justifiable”, says the Tax Institute.

Treasury has been consulting on tougher Super Guarantee rules. The draft legislation includes a new power for the ATO – to give a direction requiring the payment of Superannuation Guarantee Charge to the tax office. Failing to comply could result in either or both 12 months’ imprisonment or 50 penalty units ($10,500 at current rates).

“In our opinion, this provision should not be introduced as the current penalty regime already provides for significant penalties,” says the Tax Institute in a submission on the draft legislation. Read more...

Single Touch Payroll start dates should be pushed back: Tax Institute

Employers have not been given enough time to prepare for Single Touch Payroll, and the start dates should be pushed back at least one year, says the Tax Institute.

Single Touch Payroll is a new system for employers to report salary & wages, PAYG withholding and superannuation information. Large employers (20 or more employees) are scheduled to start using the system from 1 July 2018, and small employers (19 or fewer employees) are expected to have to start from 1 July 2019.

Expanding Single Touch Payroll to small employers was only announced in August 2017 and requires legislation be passed, on which Treasury has been consulting. The Tax Institute, in a submission on the draft legislation, says employers have not been provided with adequate time to adjust, due to the “enormity of recent superannuation reforms”. Read more...

Government does 180-degree turn on Super Guarantee penalties

The Government has done a 180-degree turn on penalties for employers who don’t pay the required amounts of Superannuation Guarantee on time, going from winding back penalties to increasing them – including prison time.

The Government has introduced to Parliament a Bill to increase the penalties for Super Guarantee non-compliance, the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018. It was only in December that the Government officially dropped its policy of winding back some of the penalties for underpayment of Super Guarantee. Read more...