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Accountants urge real-time SG payments
A move to real-time payment of superannuation guarantee (SG) contributions would go a long way towards addressing the problems being experienced with the system, according to accountancy body, CPA Australia.
The organisation has used a submission to the Senate Economics Committee inquiry into SG non-payment to suggest that the current quarterly payments regime gives rise to too many problems – making it difficult for the Australian Taxation Office (ATO) to monitor and for employees to identify any non-payments.
While acknowledging that the introduction of Superstream and single-touch payroll arrangements would go some way towards addressing problems, the CPA Australia submission also advocated a real-time payment approach.
“A move to real-time payment of SG with an appropriate transition period may also help to address non-payment,” it said. “That is, aligning the payment of SG with an employer’s pay cycle.”
It said this would need to be aligned with an appropriately long transition period to allow employers to modify their cash flow practices and would require a comprehensive communications program.
“The quarterly payment requirement was introduced at the commencement of the SG regime to allow employers time to adjust their cash flow practices with a view to the period being reduced to one month over time,” the submission said.
“However this change was never enacted, and it would appear some employers have adjusted their practices to take advantage of the delay.”
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