Kay Hull (Riverina, National Party) Share this | Hansard source

Today it gives me pleasure to support the Tax Laws Amendment (2007 Measures No. 1) Bill 2007. I want to focus on one area of the bill that is related to the disclosure of information relating to superannuation guarantee complaints. The objectives of these amendments are to enable the Commissioner of Taxation or an officer of the Australian Taxation Office to provide information to an employee in response to a complaint that an employee may have about an employer not complying with their obligations under the Superannuation Guarantee (Administration) Act 1992. It is particularly important that employees should be able to discuss information pertaining to the money that they have in their super accounts, particularly from the guarantee contributions. It is very important that they be able to have those discussions about the money—which they own—or, in some cases, the lack of money, in these superannuation funds.

Earlier this month I had reason to contact the minister regarding the concern of a constituent who had made contact with my office in Wagga Wagga in Riverina. That person’s employer had allegedly not been paying anything into their superannuation guarantee fund for the past three years. This person’s records showed that in the financial years of 2004, 2005 and 2006 the employee earned in excess of $80,000. We could reasonably assume that payments of nine per cent on that amount would equate to approximately $7,000. However, the amount that was on the superannuation statements did not reflect the amount of money being deposited into the constituent’s chosen fund.

All of the alleged payments that were supposedly contributed under the guarantee levy were printed on the payslips, yet the payments were not appearing on the constituent’s superannuation statements. She had a right to be concerned. Try as she might to discuss this, she simply could not access information as to her own accounts. She was not only concerned that the mandatory nine per cent superannuation employers are obliged to pay was not being contributed, but she was also disappointed in the way the Australian Taxation Office had handled her complaint. They could not give her any detail. She could not discuss what she felt was within her rights to discuss—and that is to determine the bottom line of her inquiry into this money not being forthcoming, or not appearing on the superannuation statements.

My office contacted the Australian Taxation Office and were told that the investigation would take possibly many months to complete. That is exactly what my constituent was told. I can understand process, and there certainly is a need to undertake investigations in these areas, but what concerns me is that when my constituent contacted the ATO in July 2006 to follow up the matter, after speaking with the employer, she was told to wait a further two months to see if any payments would be forthcoming. That was fine; it was agreed. That was a simple and sensible thing to do. Sometimes the payments may be honoured in that time and there may be no need to pursue this any further. However, no payments were made. So my constituent again contacted the ATO and they again stated to her that they did not like the chances of seeing any money. They were concerned about the way in which the finances of the small businessperson might be impacted upon. They indicated that a matter like this could take anywhere between one and six years to be finalised.   

When I read the intent of this bill, my interest was aroused because I think people are entitled to understand, to know and to expect that employers do the right thing. Time after time and occasion after occasion in this House I support and defend employers with respect to Work Choices, industrial relations and many other areas, but at the same time they have to be fair in their consideration and determination. Employers have an obligation to do the right thing by their employees, particularly in relation to their superannuation contributions. I become particularly aggrieved when I see employers choosing to do things with their finances other than meeting their clear and concise obligations for employees. If it is good enough for me to come into this House to defend the rights of employers in a host of industrial relations matters, which I will continue to do, it is simply good enough for me to come into this House to also ensure that I deliver my views about the ways in which I believe employers are obligated to do the right thing by their employees.

The passage of this new legislation will mean that employees will be able to obtain more information on the progress of their inquiries about the nonpayment of superannuation guarantee contributions. Let us face it: they belong to the employee. I believe employees have every right to access this information. Superannuation payments are supposed to be contributed so that employees will be able to live in the future—the reason the guaranteed nine per cent contribution was put in place in the first instance.

The changes are aligned with the findings and recommendations of both the Royal Commission into the Building and Construction Industry and the former Senate Select Committee on Superannuation and Financial Services. Under this new law, the commissioner may provide information to an employee in response to the employee’s superannuation guarantee complaint.

Under the current law the commissioner or an officer of the Australian Taxation Office generally may not disclose information held by them in the course of their duties. There is no provision at all for the disclosure of information to employees about their employer’s compliance with obligations under the Superannuation Guarantee (Administration) Act 1992. I think this is simply unacceptable.

An employee or former employee may make a complain to the commissioner where they think that their employer has not complied with its obligations under the Superannuation Guarantee (Administration) Act 1992. The complaint must specify the obligations in question, which is quite onerous. In the end, an employer may also have choice of superannuation fund obligations in respect of its eligible employees.

Under the law employers must make superannuation contributions to the employee’s designated superannuation fund at least every three months. You might recall that I said this employee had not had any payments made for three years. Superannuation contributions are invested over the period of the employee’s working life and the sum of compulsory and voluntary contributions, plus earnings, less taxes and fees is eventually paid to the person when they choose to retire. People absolutely depend upon these, particularly as the retirement age is dragged out.

The sum most people receive is predominantly made up of their compulsory employer contributions. It is imperative that these be beyond question. I believe that, if an employer is not making the correct payments on behalf of an employee, they are not meeting their obligations and an employee has the right to lodge a complaint. They also have the right to find out where these complaints are up to and exactly how the investigation is going. I am fully supportive of this amendment to the Tax Laws Amendment (2007 Measures No. 1) Bill 2007. I congratulate the Minister for Revenue and Assistant Treasurer on introducing this legislation for the protection of employees. I commend the bill to the House.

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