Retirement
Super reforms won’t end underpayment, says KPMG
New powers given to the tax man will help strengthen the superannuation system, but won’t close the ‘super guarantee gap’ that sees many Aussies underpaid, an accountancy firm has said.
Super reforms won’t end underpayment, says KPMG
New powers given to the tax man will help strengthen the superannuation system, but won’t close the ‘super guarantee gap’ that sees many Aussies underpaid, an accountancy firm has said.
The Australian Taxation Office (ATO) recently received new powers as part of reforms aimed to close the ‘super guarantee gap’ – referring to the gap between the amount of super contributions Australian employers are expected to make, and the amount they actually do.
Dana Fleming, a tax partner with accounting firm KPMG, noted that in 2015 alone this gap was around $2.85 billion, meaning just over 5 per cent of super guarantee contributions were not made by employers.
The reforms to help stop this non-compliance among employers, including requiring super funds to report the contributions they receive at least monthly and beefing up the ATO’s recovery powers, are “welcome reforms”, Ms Fleming said, but notably lacked “arguably the most powerful” tool that the ATO could have been given.
Absent from the reforms is a requirement for employers to make their super guarantee payments on a monthly, rather than quarterly basis, Ms Fleming noted.
“Whilst appropriate transitional arrangements may be required, especially for small business, it’s puzzling that this simple step has not been taken,” she said.
Ms Fleming is not alone in her concern over unpaid super guarantee contributions, with federal MP Rebekha Sharkie recently tabling a bill in Parliament that pushed for even more reforms, including closing a loophole allowing employers to claim their employees’ voluntary contributions as employer contributions, and making super contributions a part of the National Employment Standards.
“There are at least 2.4 million workers in this country who have been underpaid their super, ripping out $3.6 billion from retirement savings,” Ms Sharkie said.
“If we don’t do something to make it easier for workers to find out that they haven’t been paid their full entitlements, and give them more power to stand up for their rights, that retirement rip-off is going to balloon out to $66 billion.”
RELATED ARTICLES
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Aware Super appoints Simon Warner as Chief Investment Officer
Aware Super has announced the appointment of Simon Warner as Chief Investment Officer, effective 1 December 2025, following a competitive global search to replace outgoing CIO Damian Graham, who ...Read more
Superannuation
Employers call for pragmatic safeguards to ensure Payday Super reform succeeds
Employment Hero chief executive Ben Thompson has urged the federal government to introduce a phased rollout and reciprocal safeguards to support small businesses as the Payday Super reform approaches ...Read more
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Aware Super appoints Simon Warner as Chief Investment Officer
Aware Super has announced the appointment of Simon Warner as Chief Investment Officer, effective 1 December 2025, following a competitive global search to replace outgoing CIO Damian Graham, who ...Read more
Superannuation
Employers call for pragmatic safeguards to ensure Payday Super reform succeeds
Employment Hero chief executive Ben Thompson has urged the federal government to introduce a phased rollout and reciprocal safeguards to support small businesses as the Payday Super reform approaches ...Read more
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
