Businesses and industries will soon get their say on looming superannuation changes requiring employers to pay contributions at the same time as a worker’s salary.
The federal government will begin consulting on Monday about superannuation law changes, due to kick in from July 2026, where super must be paid on pay day.
The measures, first announced in the most recent federal budget, aim to claw back billions of unpaid superannuation to workers.
It’s estimated workers were owed $3.4 billion worth of super in the 2019/20 financial year, according to the tax office.
“The non-payment and underpayment of superannuation guarantee contributions by employers risks the retirement income of millions of employees,” the consultation paper on the changes said.
“Due to the current design of the superannuation guarantee system, many superannuation guarantee obligations remain unpaid for extended periods of time.”
Along with the super pay changes, the government is also looking to beef up the ATO to detect and recover super payments that have not been placed in the funds of workers.
“The ATO has noted that businesses often enter liquidation or bankruptcy before the underpayment is identified, limiting its ability to conduct effective compliance activities and recover unpaid superannuation,” the paper said.
Consultation on the proposed changes will be open for industries to suggest improvements until November 3.
The consultation paper will also seek feedback on how the choice of super funds by employees could be improved when a worker joins a company.
Figures from Treasury estimate a switch to super payments being paid at the same time as salary could see an employee $6000 better off by the time they retire.
Design on the proposed laws will take place throughout much of 2024, following the consultation process.
(Australian Associated Press)