Home Member Resources News GOVERNMENT TO PREVENT EMPLOYERS USING SALARY SACRIFICE TO REDUCE SG PAYMENTS
Member Resources

GOVERNMENT TO PREVENT EMPLOYERS USING SALARY SACRIFICE TO REDUCE SG PAYMENTS

Wednesday, 23 August 2017

The Government has announced it plans to legislate to close a loophole which it says could be used by unscrupulous employers to short change employees who choose to make salary sacrifice contributions into their superannuation accounts.
The change was recommended by the Superannuation Guarantee Cross Agency Working Group.

The Minister for Revenue and Financial Services, Kelly O’Dwyer, said the Government would introduce a Bill into Parliament that would ensure an individual’s salary sacrifice contributions do not reduce their employer’s superannuation guarantee obligation.

The change is included in the Treasury Legislation Amendment (Improving Accountability and Member Outcomes in Superannuation) Bill 2017 – further details below.

“If Australians are to continue to have confidence in the integrity of the superannuation system, we must ensure employers are paying workers their full entitlements, whether they are wages or superannuation,” the minister said.

She also released the report of the Superannuation Guarantee Cross Agency Working Group, which made a number of recommendations to improve employer compliance with their superannuation guarantee obligations. She said, “The Government is carefully considering the remaining recommendations made by the Working Group report to ensure that any measures progressed will improve compliance without unduly burdening employers.”

In March New Daily reported: ‘ATO sanguine about salary sacrifice diversions’.

 

Click below to view source

Ministerial media release: Government takes action to address superannuation guarantee non compliance

Treasury: Exposure Draft - Treasury Legislation Amendment (Improving Accountability and Member Outcomes in Superannuation) Bill 2017
New Daily: ATO sanguine about salary sacrifice diversions

Login to post comments
Array ( [format] => html [Itemid] => 160 [option] => com_k2 [view] => item [task] => 856:government-to-prevent-employers-using-salary-sacrifice-to-reduce-sg-payments [id] => 856:government-to-prevent-employers-using-salary-sacrifice-to-reduce-sg-payments )