Draft legislation recently released for consultation by the Treasury shows considerable promise for reducing the current complexity faced by employers in calculating their employees’ superannuation guarantee entitlements.
These developments follow the release of the Board of Tax report on tax impediments facing small business earlier this year which highlighted the high compliance costs for small business meeting their obligations under Australia’s complex tax and superannuation systems.
The proposed changes to the Superannuation Guarantee (Administration) Act 1992 (Cth) (Act) are usefully summarised in the explanatory memorandum. We have added additional commentary to explain how each change is effected:
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If enacted, these changes are expected to commence on 1 July 2016. Public consultation on these reforms runs until 18 September 2015.