Our financial services team have posted an update on compliance obligations for annual leave loading and superannuation guarantee obligations. Click here to discover more.
In addition, our colleagues at Greenwoods + Herbert Smith Freehills have posted their article Superannuation Guarantee owed on Annual Leave Loading. Click here to read their article.
On 14 September 2017, the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 2) Bill 2017 (Cth) was introduced in the House of Representatives. The Bill contains two amendments which will significantly impact employers:
- amendments regarding choice of superannuation funds for employees under workplace determinations or enterprise agreements; and
- amendments regarding employee salary sacrifices to superannuation.
The provisions of the Bill were referred to the Senate Economic Legislation Committee for reporting by 23 October 2017.
The Government has announced a further package of superannuation reforms to address concerns that employers may not be complying with their superannuation guarantee (SG) obligations.
The proposed reforms:
- suggest that the ATO will be granted additional powers to ensure that employers are contributing the correct amount of superannuation contributions for eligible employees; and
- impose additional reporting obligations on trustees of superannuation funds and employers. Continue reading
The Senate Economics References Committee has released its report 'Superbad – Wage theft and non-compliance of the Superannuation Guarantee' following concerns raised by Industry Super Australia about considerable underpayment of mandated Superannuation Guarantee contributions.
Employers may need to review their salary sacrifice policies as from 1 July 2017 due to changes to the superannuation rules. The most significant change is that, from 1 July 2017, employees will be able to make personal superannuation contributions and claim a tax deduction, rather than needing to salary sacrifice take home pay into superannuation.
We explain below:
- the current position on salary sacrificed contributions;
- the new position as of 1 July 2017; and
- what action employers can take as a result of these changes.