ATO outlines $17b super grift
The ATO says employers have robbed Australian workers of about $17 billion in superannuation since 2009.
An Australian Tax Office (ATO) review has found employers are short-changing staff by an average $2.81 billion every year, with a peak of $3.3 billion in 2014-2015.
The worst offenders are small-to-medium businesses in the construction, retail, food services and accommodation sectors, but the dodging of obligations is almost workforce-wide.
ATO deputy commissioner for superannuation James O'Halloran said employers who hold back superannuation should prepare for tougher penalties.
“My message is to do the right thing and pay employees their entitlements,” he said.
“We have at least 150 staff doing super guarantee work full time. Any level of non-compliance is of concern given the impact it has on employees.
“If we find there has been intentional disregard, we will apply penalties and take people to court as necessary.
“There is a penalty regime of up to 200 per cent of the outstanding amount of super guarantee.”
The ATO has looked into “the superannuation guarantee gap” — the difference between the current 9.5 per cent superannuation guarantee payment required by law and the amounts that employers actually contribute.
In the six years from 2009 to 2015, the ATO found a gross gap of about $17 billion, caused by 5 per cent of unscrupulous employers evading the payment.
But the ATO says it has recovered and paid over $2 billion into employee superannuation accounts since 2010.
Financial Services Minister Kelly O'Dwyer has backed the ATO’s campaign with more money.
“The Government is very concerned about any employee who loses out on their superannuation entitlements — it is illegal,” Ms O'Dwyer said.
“Those workers are being robbed of their wages.
“Under the Government's new changes, those employers will face the full force of the law. They will find themselves for the first time as being directly responsible for their employees' superannuation accounts.
“The ATO will have new ability to seek court-ordered penalties in the most egregious of the cases of non-payment and they will be able to secure assets for high-risk employers.”