Draft legislation aims to protect workers’ super entitlements, while modernising the way the super guarantee is enforced.
The laws will extend Single Touch Payroll to employers from 1 July 2019. Single Touch Payroll is a system that allows employers to report payments like salaries and wages, pay as you go (PAYG) tax and super directly to the Australian Taxation Office (ATO) from their payroll system as they pay their employees.
The ability for all employers to use Single Touch Payroll will boost reporting of super payments and obligations, while allowing the ATO to access real time compliance information.
From 1 July this year, super funds will also begin event-based reporting to the ATO. ATO will be able for the first time to apply for court-ordered penalties, including up to 12 months imprisonment.
According to Industry Super analysis of ATO numbers, 32 per cent of workers were underpaid their super by $2,025 on average in 2013-14.