Cbus submission to the Inspector-General of Taxation
13 January 2016
Cbus has released their submission to the Inspector-General of Taxation (IGT) regarding the ATO’s employer obligations compliance activities
The submission focuses on the collection of Superannuation Guarantee (SG) arrears which continues to be an issue for the construction and building industry and the Australian economy.
Unpaid superannuation contributions cause:
- an immediate and negative effect on the collection of government revenue through lost taxation;
- a delayed and detrimental impact on individuals’ retirement savings, robbing them of the benefits of capital accumulation and investment earnings;
- a greater strain on the age pension and other public services which leads to a greater impost on the Federal Budget.
The Cbus submission highlights recent research by Tria Investments which estimates that 690,000 Australians are impacted by growing non-compliance in the payment of compulsory superannuation entitlements.
The Cbus submission includes recommendations that:
- Superannuation Guarantee contributions be paid congruently with the payment of wages;
- The Government’s proposed reduction in penalties for Superannuation Guarantee non-compliance be abandoned;
- The ATO increase pro-active measures being undertaken in relation to Superannuation Guarantee compliance.
For more information see the Cbus submission to Inspector-General of Taxation (PDF).