Directors held liable on super guarantee
Unpaid superannuation guarantee payments will haunt the directors of failed companies long after their businesses are wound up, under changes being implemented by the Federal Government.
The Government has said it is about to enter into a consultative process around specific changes to the superannuation regime aimed at protecting workers’ entitlements, including extending the penalty regime on unpaid superannuation guarantee contributions to company directors.
The Assistant Treasurer and Minister for Financial Services, Bill Shorten, made the announcement at the same time as saying the Government would be implementing a number of recommendations flowing from an inspector general of taxation review of the superannuation guarantee charge.
He said the inspector general was of the view that if a company failed and owed superannuation to employees, then the directors of the company should be made strictly liable for the unpaid superannuation liabilities of the company.
Shorten said this would act as a strong deterrent against employers not paying superannuation and also discourage phoenix practices.
AUTHOR
Mike Taylor
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