Katy Gallagher (ACT, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 22 March 2017:

The impact of non-payment of the Superannuation Guarantee (SG), with particular reference to:

(a) the economic impact on:

  (i) workers, their superannuation balances, and retirement incomes,

  (ii) competitive neutrality among employers, and

  (iii) government revenue, including forgone superannuation contributions, earnings taxes, and SG charge penalties, over both the forward estimates and the medium term;

(b) the accuracy and adequacy of:

  (i) information and data collected by the Australian Taxation Office (ATO), the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission on SG non-payment,

  (ii) information and data collected by other agencies, such as the Fair Work Ombudsman, on SG non-payment, and

  (iii) any legislative, privacy, or other reporting barriers preventing the collection of accurate information and data on SG non-payment;

(c) the role and effectiveness of:

  (i) the ATO monitoring, investigations, and recovery of unpaid SG, including technology and data collection to predict and prevent non-payment,

  (ii) resources and coordination between government agencies and other stakeholders to prevent non-payment,

  (iii) legislation and penalties to ensure timely and fair payment of SG,

  (iv) superannuation funds in detecting and recovering unpaid SG,

  (v) employment and contracting arrangements, including remedies to recoup SG in the event of company insolvency and collapse, including last resort employee entitlement schemes, and

  (vi) measures to improve compliance with the payment of SG;

(d) the appropriateness of responses by:

  (i) the ATO receiving complaints and 'tip-offs' about SG non-payment,

  (ii) members of Parliament asked to assist and support constituents who have been impacted by SG non-payment, and

  (iii) accountants, auditors, creditors and financial institutions who become aware of SG non-payment; and

(e) any other related matters.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

The government treats the issue of the non-payment or underpayment of the super guarantee very seriously. Employees require and have an expectation that employers will meet their legal obligations. The government continues to work with the ATO to protect employees from being ripped off, including targeting illegal phoenixing. This is being done through the Serious Financial Crime Taskforce and the Phoenix Taskforce to prevent the practice of deliberately liquidating a company to avoid paying creditors, including employee entitlements. The Inspector-General of Taxation is also working on a project reviewing the ATO's employer-obligation-compliance activities.

Question agreed to.