This report covers a new Exposure Draft on legislation that would strengthen the integrity of Australia’s system for mandatory employer superannuation contributions.
On 24 January 2018, the federal government released Exposure Draft (ED) Treasury Laws Amendment (Taxation and Superannuation Guarantee Integrity Measures) Bill 2018 to strengthen the integrity of Australia’s system for mandatory employer superannuation contributions (SG). If enacted, the draft legislation would provide the Australian Taxation Office (ATO) with additional powers, including:
Employers should particularly take note of the third item above. Under the proposed legislation, if an employee made a complaint to the ATO about his/her employer failing to make the required superannuation contributions, the ATO could now take the lead in communications with other employees who might be similarly affected. In such cases, this would imply more involvement by the ATO where employers are concerned.
The ED also includes proposing:
The ED emphasizes that:
These proposals are indicative of the increased focus that government is placing on compliance. Coupled with the real-time data that STP will make available to the ATO, this presents a strong case to employers to thoroughly review their processes and practices in relation to SG.
1 For the Exposure Draft and Explanatory Material, and other related documents, click here.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.