The Turnbull Government has introduced a one‑off, twelve-month amnesty for employers to come forward to pay any unpaid superannuation.
The amnesty for historical underpayment of the superannuation guarantee (SG) would complement the sweeping SG integrity package currently before Parliament, Federal Revenue and Financial Services Minister, Kelly O’Dwyer, said.
But, O’Dwyer said, employers will not be “off the hook” – to use the amnesty they must pay all that is owing to their employees, including the high rate of nominal interest.
“However, the amnesty will make it easier to secure outstanding employee entitlements, by setting aside the penalties for late payment that are normally paid to the Government by employers,” she said.
Employers that do not take advantage of the one-off amnesty will face higher penalties when they are subsequently caught – in general, a minimum 50 per cent on top of the SG charge they owe, O’Dwyer said.
In addition, throughout the amnesty period the Australian Taxation Office (ATO) would continue its usual enforcement activity against employers for those historical obligations they don't own up to voluntarily, she said.
O’Dwyer quoted estimates from the ATO which showed that in 2014-15, around $2.85 billion in SG payments went unpaid.
"While this represents a 95 per cent compliance rate, any level of non-compliance is unacceptable, which is why the Turnbull Government is giving the ATO the tools it needs to enforce compliance going forward," she said.
"We are introducing this one-off amnesty to allow employers to wipe the slate clean and pay their workers what they're owed. All Australians workers should be paid the entitlements they are owed."
The amnesty will run for twelve months from 24 May, 2018.
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.