This report covers a new Exposure Draft on legislation that would strengthen the integrity of Australia’s system for mandatory employer superannuation contributions.
On 24 January 2018, the federal government released Exposure Draft (ED) Treasury Laws Amendment (Taxation and Superannuation Guarantee Integrity Measures) Bill 2018 to strengthen the integrity of Australia’s system for mandatory employer superannuation contributions (SG). If enacted, the draft legislation would provide the Australian Taxation Office (ATO) with additional powers, including:
Employers should particularly take note of the third item above. Under the proposed legislation, if an employee made a complaint to the ATO about his/her employer failing to make the required superannuation contributions, the ATO could now take the lead in communications with other employees who might be similarly affected. In such cases, this would imply more involvement by the ATO where employers are concerned.
The ED also includes proposing:
The ED emphasizes that:
These proposals are indicative of the increased focus that government is placing on compliance. Coupled with the real-time data that STP will make available to the ATO, this presents a strong case to employers to thoroughly review their processes and practices in relation to SG.
1 For the Exposure Draft and Explanatory Material, and other related documents, click here.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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