The legislation aims to protect workers superannuation entitlements, while modernising the way the super guarantee is enforced. The introduction of Single Touch Payroll for employers from 1 July 2019 will make it much easier for the Australian Taxation Office to monitor and identify employers who skip their superannuation obligations, rather than the current regime of self-reporting.
The Single Touch Payroll system allows employers to report salaries, wages, PAYG tax and super directly to the ATO from their payroll systems.
This will allow the ATO to access real-time compliance information regarding superannuation payments.
This will support earlier detection and proactive prevention of non-payment of superannuation that is due to employees.
The government has indicated that there will be serious consequences for employers who break the law.
There will be strengthened systems for Director Penalty Notices where directors can become personally liable for unpaid superannuation payments.
Further, the ATO will be able to apply for Court ordered penalties against the employers including up to 12 months imprisonment.
The ATO will also have the power to require employers to undertake compulsory training regarding their payment obligations.
The legislation will also close a loophole that allowed unscrupulous employers to short-change workers who salary sacrifice their salary into their super.
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