CPSA welcomes the move to improve the superannuation system.
Unscrupulous employers who don’t pay their employees’ superannuation guarantee will no longer be able to get off scot free.
The Australian Government has introduced legislation to increase penalties to employers that do not pay their employees’ superannuation.
The bill is called the Treasury Laws Amendment (2018 Measures No.4) Bill 2018. It will give the Australian Tax Office (ATO) the power to apply for court ordered penalties, including up to 12 months imprisonment.
According to ATO estimates there is $2.85 billion in unpaid superannuation each year. Industry Fund Services (IFS), which collects unpaid super on behalf of industry super funds, collected $187 million last year from over 36,000 employers on behalf of over 226,000 employees.
Chief Executive of IFS, Cath Bowtell, said that “we are kidding ourselves if we think non-payment of superannuation is confined to casual or contract labour working short engagements for multiple employers”.
CPSA has long called on the Australian Government to prosecute employers who do not pay their share of their employees superannuation entitlements.
CPSA welcomes the move to improve the superannuation system.
