The Australian Taxation Office (ATO) has given back $932 million in unpaid super to 797,000 workers. This big move shows the ATO’s hard work to make sure employers pay their super on time. It’s key for workers’ retirement plans.
Deputy commissioner Emma Rosenzweig said over 92% of super was paid without the ATO needing to step in. This shows the agency’s active role. Employers must now pay 11.5% super, and this will go up to 12% in 2025.
To get this done, the ATO has increased its checks on employers. They’ve contacted about 167,000 employers, up 24% from last year. This effort is to protect workers’ financial futures and make sure they get their super.
Major Highlights
- The ATO has returned $932 million in unpaid superannuation to 797,000 employees over the past year.
- Over 92% of super entitlements were paid without the need for ATO intervention.
- The ATO has proactively reached out to 167,000 employers, a 24% increase from the previous year.
- Employers are required to pay an 11.5% super rate, increasing to 12% on July 1, 2025.
- The ATO’s intensified compliance efforts aim to safeguard workers’ retirement income planning.
Record-Breaking Superannuation Recovery: $932 Million Returned to Workers
The Australian Taxation Office (ATO) has made a huge achievement. They recovered $932 million in unpaid super for 797,000 workers. This shows how the ATO’s new rules help employers pay their super on time.
Breaking Down the Recovery Numbers
The ATO’s work has greatly helped workers’ retirement savings. They recovered $932 million. This is thanks to the ATO’s active steps to fix unpaid super issues.
Impact on 797,000 Australian Employees
797,000 workers have benefited from the ATO’s efforts. Their retirement savings are now safe and growing as planned. This highlights the ATO’s key role in protecting workers’ money and fairness in super.
ATO’s Enhanced Compliance Measures
The ATO’s new ways of checking up on employers have paid off. They’ve increased audits to make sure employers pay super correctly. This has helped fix unpaid super issues, making sure workers get their full retirement savings.
| Statistic | Value |
|---|---|
| Total amount returned to workers | $932 million |
| Increase in all rates of pay claimed by ACTU | 3% on and from 1 July 1988 |
| Additional increase claimed by ACTU | 3% on and from 1 December 1988 |
| Increase in salaries claimed by ACPA | 6% |
“The ATO continues to receive referrals from employees reporting unpaid super, and we are committed to protecting workers’ superannuation and maintaining a level playing field for all businesses.”
– Emma Rosenzweig, ATO Deputy Commissioner
Related links
ATO’s Intensified Employer Audits and Compliance Reviews
The Australian Taxation Office (ATO) is working harder to make sure employers pay superannuation on time. They are doing more audits and reviews to protect workers’ retirement savings. This helps keep superannuation funds strong.
Proactive Employer Outreach Programs
The ATO is reaching out to about 167,000 employers to remind them to pay superannuation. This early action helps fix any problems before they get worse. It makes sure workers’ retirement savings are safe.
Quarterly Payment Requirements and Deadlines
Now, employers must pay superannuation every three months. Payments are due by October 28, January 28, April 28, and July 28. This change helps superannuation funds work better and supports retirement planning for employees.
Single-Touch Payroll Implementation
Single-Touch Payroll gives the ATO better access to payroll and superannuation data. This makes it easier for them to spot and fix any issues. It helps protect workers’ retirement savings even more.
These steps show the ATO’s dedication to making sure employers meet their superannuation duties. It ensures the financial security of Australian workers and the health of the superannuation system.
Understanding the Superannuation Retirement Boost Initiative
The Superannuation Retirement Boost Initiative is key to the Australian Taxation Office’s (ATO) mission. It ensures workers get their full superannuation. The goal is to protect retirement savings and make sure all businesses play fair.
The ATO is working hard to make sure everyone gets their super. They’ve found $932 million in unpaid super thanks to better checks and data access. This is because the super rate is going up to 12% by 2025.
This effort is vital for superannuation legislation and retirement readiness. The ATO is tackling unpaid super to help workers plan for retirement. This way, they can enjoy the fruits of their labor fully.
| Key Initiatives and Outcomes | Details |
|---|---|
| Government Co-contribution Scheme |
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| Personalized Support |
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The Superannuation Retirement Boost Initiative is a big step for the ATO. It shows their dedication to helping workers plan for retirement. They want everyone to have access to their super savings.
Upcoming Changes to Superannuation Payment Systems
The Australian superannuation system is changing. Employers will start using a new ‘Payday Super’ payment model by July 2026. This change aims to fix the problem of $5.1 billion in unpaid super each year. It will help improve retirement for Australian workers.
Transition to Payday Super by July 2026
From July 1, 2026, employers will pay superannuation with salaries and wages. This move from quarterly to ‘Payday Super’ aims to make payments more timely. It could also reduce unpaid super and boost retirement income planning for employees.
Impact on Different Payment Frequencies
The Payday Super change will impact various payment cycles. About a third of workers get paid weekly, 54% fortnightly, and 14% monthly. The new system must handle these different cycles smoothly for efficient superannuation consolidation.
Addressing the $5.1 Billion Annual Unpaid Super Issue
The main reason for Payday Super is the $5.1 billion in unpaid super each year. By linking super payments to regular wages, the government hopes to boost compliance. This will help reduce the super owed to workers, improving their retirement income planning.
| Payment Frequency | Percentage of Employees |
|---|---|
| Weekly | 33% |
| Fortnightly | 54% |
| Monthly | 14% |
The move to Payday Super by July 2026 is a big step. It aims to tackle the long-standing unpaid super issue. This could lead to better retirement income planning and superannuation consolidation for millions of workers.
Government’s Future Reform Plans for Retirement Phase
Treasurer Jim Chalmers has announced plans to change the retirement phase of superannuation. Over 2.5 million Australians will retire in the next decade. The goal is to make it easier to get reliable information, support new super products, and focus on retirement outcomes.
The government will work on new “best practice principles” for the industry. These will help create modern, high-quality retirement products. The aim is to make it easier for retirees to manage their savings and have more choices in retirement.
New resources for retirement information will start in the first half of 2025. Updated rules for retirement products will begin on 1 July 2026. The government wants to keep talking with stakeholders to make retirement better for Australians.
