Super reforms not enough
FEDERAL Independent MP Cathy McGowan (MHR, Indi) has sought further government action on the superannuation “emergency” affecting Indi people to the tune of nearly $23 million.
Ms McGowan has introduced a motion to the parliament urging the government to adopt all 32 recommendations of a Senate report on Superannuation Guarantee non-compliance.
The government will introduce a package of reforms to give the Australian Taxation Office stronger recovery powers, but Ms McGowan said the reforms needed to go further.
“I welcome the strengthening of employer penalties for non- compliance, increased powers for the ATO when dealing with repeat offenders, and a ‘single touch’ payroll electronic payments system,” Ms McGowan said.
“However, I call the government to act on further key reforms including establishing a safety net to cover workers when employers become bankrupt and improved payslip reporting.”
Ms McGowan praised Wangaratta’s Cheryl Robl who has highlighted the personal impact of missing out on her superannuation entitlements.
“Ms Robl’s employer had declared bankruptcy, leaving her retirement fund shortchanged by more than $8000,” she said.
Ms McGowan raised Ms Robl’s case with the Minister for Revenue and Financial Services, Kelly O’Dwyer in parliament and said the Wangaratta resident is not alone - a report from Industry Super Australia and Cbus in December 2016 indicating people in Indi were underpaid $22,904,770 in superannuation.
“The Superannuation Guarantee has to be seen as part of Australians’ retirement savings and it must be paid,” Ms McGowan said. FREE