Following the passing of Treasury Laws Amendment (2018 Measures No. 4) Bill 2018, the ATO now has the below increased powers to enforce the super guarantee laws:
The power to issue super guarantee charge directions;
The power to issue education directions for failure to comply with a superannuation obligation;
The power to disclose to employees, or former employees, an employer’s failure to comply with the super guarantee laws; and
The power to make directors personally liable for a company’s unpaid super guarantee.
The direction power is a significant change to the current superannuation law and includes that:
Directions can be issued if the employer has failed to pay an amount of super guarantee charge, or an estimate of super guarantee charge, for any quarter;
The employer must pay the unpaid liability within the period specified in the direction; and
Failure to comply with the direction can result in criminal penalties.
The new laws are retrospective from 1 July 2018. The super guarantee amnesty measure, that was to accompany the tougher superannuation guarantee laws, is still in parliamentary limbo and may not proceed.
To discuss this further or for more information please contact: