About $100 million in superannuation entitlements have been paid to Australian workers, after their employers failed to meet their payment obligations.
Employers are currently being granted an amnesty period for superannuation guarantee obligations - meaning they can confess to and rectify instances where they haven’t paid their staff superannuation, and they will mostly escape penalty.
To date, the tax office has recovered and paid $100 million in outstanding superannuation guarantee payments, it told a parliamentary hearing this week. There’s also been about a 15 per cent rise in employers admitting to falling short of the law.
Of the approximately 19,000 employers that have come forward, 73 per cent are micro business with less than $2 million turnover, and 21 per cent are medium businesses within $2 million to $250 million turnover, with not-for-profits accounting for 4 per cent.
The average number of employees affected is 36 employees, with 51 per cent of the payments in the order of $10,000 and 35 per cent in the order of $10,000 to $50,000, according to deputy commissioner at the ATO, James O’Halloran.
“There’s a $100 million or so that has gone to employees as a consequence of people coming forward and that is including nominal interest,” Mr O’Halloran said.
“I am not distinguishing the drive or impression that people may or may not have had because they are all treated the same,” he said.
“Regardless of how and why people came forward to the ATO to bring forward outstanding SG obligations, they were all treated the same, consistent with what we do in our normal course of business in accordance with our practice statements,” he said.
- Australian manufacturers can create their own stimulus
- Here’s what separates success from the rest
By Adam Zuchetti
- 5 workplace trends to watch in 2020
By Nicole Gorton