Employer Super Fraud Curbed
Proposed New Laws
Under proposed new laws, employers who fail to follow the Tax Office’s direction to pay super entitlements to their employees will be subject to court-ordered financial penalties as well as up to 12 months’ imprisonment.
This is the type of regulatory action CPSA has been calling for for a long time.
Directors of companies that don’t pay super will come in for special attention with a “director identification number” to help the Tax Office identify those directors who are ripping off their employees.
Employers are legally required to pay 9.5 per cent in superannuation to every employee, including part time and casual employees, over the age of 18 earning more than $450 gross a month.
The Tax Office estimated that in 2014-15 there was a whopping $2.85 billion-a-year shortfall, or a 5.2 per cent gap, in what employers should be paying their employees in super and what was paid.