Mid-tier floats shake up of super payments

Mid-tier floats shake up of super payments

One mid-tier has suggested that the ATO should be used as a collection vehicle for superannuation as an alternative to the impending single touch payroll reporting.

The ATO will introduce single touch payroll reporting (STPR) in July 2018, requiring employers to report superannuation payments to the ATO at the same time as they pay their employees.

Superannuation funds will also have to report back to the ATO on behalf of individuals confirming the superannuation-guarantee amounts received from employers, allowing the ATO to cross-check and catch non-compliers.

BDO partner Mark Molesworth has suggested that having employers make superannuation contributions direct to the ATO would be a better way of ensuring employers are adhering to their superannuation payment requirements.

Mr Molesworth said that this would relieve Australian businesses from vast amounts of red tape.

“Employers could avoid the requirement to make multiple super payments to various superannuation funds by just making one payment to ATO and the ATO would then divide the payment across the individual employee super fund choices,” Mr Molesworth said.

“The other red tape saving is that it supports choice of superannuation fund being administered between the employee and the ATO. An individual could nominate or change their choice of superannuation fund through the ATO online. This should lead to a reduction in the number of superannuation accounts held by individuals.”

Mr Molesworth said that this measure would also benefit the ATO in more ways than one.

“First, the ATO will have real-time data on whether employers are meeting their superannuation obligations,” he said.

“Second, because employees would nominate their preferred superannuation provider directly to the ATO, there would be assurance that the funds selected are registered and regulated.”

Mid-tier floats shake up of super payments
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