Up to 20 per cent of employers not paying superannuation: report

Up to 20 per cent of employers are not paying the Superannuation Guarantee into superannuation funds as they are required to by law, a new report shows.

Superannuation

(AAP Image/Joel Carrett) Source: AAP

A report by the Australian National Audit Office, tabled in Parliament, has found "endemic" problems with employer superannuation payments.

The report found that up to 20 per cent of employers are not paying the Superannuation Guarantee - set at  9.5 per cent of a worker's salary - into superannuation funds as they are required to by law.

The ANAO conducted an audit of the Tax Office aimed at assessing the effectiveness of the ATO’s activities in promoting employer compliance with the Superannuation Guarantee obligations.

The report found non-compliance with the superannuation obligations was widespread.

"The Australian Tax Office's own internal risk assessment indicates that as many as 11 to 20 per cent of employers could be non‑compliant with their Superannuation Guarantee obligations," the report said.

It added that "non-compliance is endemic especially in small businesses and industries where a large number of cash transactions and contracting arrangements occur."

Under parliamentary requirements, the Australian National Audit Office report was tabled this week in the House of Representatives.

The report also found that workers tended not to report the problem of non-payment.

"Research commissioned by the Australian Tax Office demonstrates that employees are reluctant to complain to the ATO about unpaid superannuation."


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