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Reducing the super red tape burden on business.
REDUCING THE SUPER RED TAPE BURDEN ON BUSINESS
Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, today announced the introduction into Parliament of Tax Laws Amendment (2008 Measures No. 2) Bill 2008 which will provide fairer treatment for employers who make super contributions after the due date.
“The Rudd Government is taking action in support of both the business community and employees.
“This Bill will ensure late contributions still count towards reducing the required superannuation guarantee payments of an employer. These changes mean employers will not have to pay the same amount twice,’’ Minister Sherry said.
Under Superannuation Guarantee (SG) law, employers are required to make compulsory super contributions at least quarterly on behalf of their employees.
If employers fail to make required contributions within 28 days of the due date, they must make the payments through the SG charge payable to the Australian Taxation Office (ATO). When paid to the ATO, the employer’s SG charge includes the shortfall amount.
“The problem with the current system is some well meaning employers incorrectly make late SG payments directly to their employee’s super fund instead of the ATO. If they do that, they are then treated as not having paid at all - in effect, they are forced to pay twice.”
“In Opposition, Labor called on the then Coalition Government to fix this harsh treatment of employers, to no avail,” Minister Sherry said.
“In line with the Rudd Government’s agenda of reducing the red tape burden on small business we’re taking early action to address this problem. Our priority is to help small business whilst ensuring super
payments are made to hard working Australians,” Minister Sherry added.
The Bill will extend the late payment offset for employers so late contributions will count towards reducing the SG charge. The net effect is that employers will no longer have to pay twice.
The offset will be available to employers from the date of Royal Assent, including to employers who have been assessed with the SG charge before this date, if their SG charge remains unpaid.
CANBERRA 20 March 2008
Contact: Anna Fenech - 0417 454 811