Government to ramp up compliance focus on unpaid SG

“If you have a look at the data that’s been published [this week] on the gap in superannuation payments, it’s around about $3 billion,” said Mr Jones.

“Now, some within the industry say that’s the bottom level. Even if it is $3 billion – not $6 billion as some estimate — it’s a hell of a lot of money that belongs in workers’ superannuation accounts.”

Mr Jones said the government will be talking to the Tax Commissioner about having a greater focus on compliance with the superannuation guarantee levy and talking to Treasury about what measures we might be able to put in place to address the issues.

One of these measures, he said, will be changing the requirements around when SG needs to be paid so that firms will be required to pay SG the same time as they pay wages.

Various superannuation bodies have lobbied extensively for this measure with ISA stating that allowing super to be paid quarterly meant it was difficult for workers to keep track of their super.

ISA chief executive Bernie Dean said it was “the right thing to do and it’s affordable”.

“Each year Australian workers are missing out on billions in super they are legally entitled to and that means a less secure future for them and their families,” Mr Dean said.

“Aligning payment of super and wages won’t just deliver workers more of what they’re owed, it will put all employers on a level playing field and boost government revenue.”

ATO Commissioner Tax Jordan said that Covid had increased the amount of collectible debt for the ATO including unpaid superannuation guarantee amounts.

“If you go back to February 2019 to August 2022 our collectible debt went from roughly $20 billion to $40 billion. Most of that is small business, self‑declared debt. It’s not tax on profits. It’s unpaid superannuation guarantee. It’s the GST that’s been collected and never remitted. It’s the withholding from wages pay as you go that has never been remitted,” said Mr Jordan.