“ … in cases where employers defy directions to pay their superannuation guarantee liabilities, the ATO will be able for the first time to apply for court-ordered penalties, including up to 12 months’ imprisonment.” – Financial Services Minister, Kelly O’Dywer (media release, 24 January 2018)
The Government has released draft legislation under which the ATO’s powers to enforce collection of unpaid superannuation would increase.
Under the draft laws, employers who fail to pay superannuation to employees could face up to 12 months’ imprisonment, as well as financial penalties.
Employees over the age of 18 are currently entitled to superannuation if they earn more than $450 per month. Under the draft laws, this threshold would be removed, meaning that ALL employees would be entitled to superannuation contributions.
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MORGAN COUZENS LEGAL