House debates

Thursday, 27 August 2020

Bills

Treasury Laws Amendment (More Flexible Superannuation) Bill 2020; Second Reading

4:26 pm

Photo of Zali SteggallZali Steggall (Warringah, Independent) Share this | Hansard source

So employers can claim deductions and not incur administration charges or penalties during this amnesty, but, paradoxically, the amnesty may lead to many businesses being forced to pay significant fees on superannuation which they have not paid, as late penalties are crystallised on the completion of the superannuation statement form. If you do pay the super but do not complete the SGC form, you incur nominal interest until it is completed. In many cases, businesses have paid super but not been aware of the requirement to complete the form, leading to penalties in the tens of thousands of dollars accruing over time. There is no discretion given to the Australian Taxation Office in these situations to waive these costs.

I've written to the Treasurer on this but, regrettably, have not received any advice as to whether it can be rectified. I would urge the Treasurer to look at this question, as it is unfairly penalising businesses for an administrative oversight, not a failure to pay appropriate superannuation to their employees. I believe that the penalty is disproportionate to the harm caused as, in most cases, the employee has received the correct amount of super. I worry that it is unfairly penalising businesses around Australia for that administrative error. Calculating nominal interest charged from the date of noncompliance to the lodging of the SGC form, not the actual superannuation payment date, results in huge costs for businesses that receive poor advice.

Finally, I welcome the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 and the changes it makes to the flexibility of the super system. The changes will provide further incentives to stash more savings away for a comfortable retirement. The super system, in this way, is an essential pillar to our retirement income and policy foundations. Yet we must not overlook that it does leave some, especially women, disadvantaged. I urge the government to go further than this bill and look at policies and private solutions to fix a still deeply unequal system.

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