The Australian Government has introduced legislation to tighten the rules around the employer-paid superannuation guarantee.
According to the Australian Taxation Office (ATO), AUD2.85bn (USD2.2bn) in superannuation goes unpaid each year.
Revenue Minister Kelly O'Dwyer said: "The Bill will protect workers' superannuation entitlements by modernizing the enforcement of the superannuation guarantee. This Bill introduces very serious consequences for employers who break the law by short changing their employees."
Under the changes, the ATO will be able to direct an employer to pay any unpaid superannuation guarantee within a specified period. The ATO will be able to apply for court ordered penalties, including up to 12 months' imprisonment, where the direction is not complied with.
The ATO will also be able to disclose more information about superannuation guarantee non-compliance to affected employees.
The legislation will also extend Single Touch Payroll (STP) reporting to all employers from July 1, 2019. STP will provide the ATO with current information about the amounts of superannuation that employers owe their employees.
by Mary Swire, Tax-News.com, Hong Kong