ISA supports the underlying intention of the proposed amnesty, as outlined in the Bill’s Explanatory Memorandum (EM): to “encourage employers to self-correct historical SG noncompliance.”
However we make the following points:
• The academic literature shows that amnesties can have mixed results,
• To be effective, amnesties need to be accompanied by strong penalties and a clear
message that there will be no further amnesties,
• This amnesty would arguably be more effective if it was linked to more significant law
reform, targeted at changing employer behavior on the timing of SG payments. For
example, if the Government were to consider amendments to the Superannuation
Guarantee (Administration) Act 1992 (SGAA) to oblige employers to deposit
Superannuation Guarantee (SG) contributions into employee accounts at the same
time as they pay their salary.
• There are also other measures that the government should be taking to address the
problem of unpaid super.
You can read the full submission below.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.