The Australian Taxation Office (ATO) has admitted it currently has no way of knowing whether employers are rorting their employees’ salary sacrifice arrangements to give the appearance of meeting their superannuation guarantee (SG) obligations.
In an answer to a question on notice to the Senate Economic Committee inquiry into non-payment of the SG, the ATO said it did not have data to indicate if, or to what extent, employers are using their employees’ salary sacrifice amounts to meet their SG obligations.
Further, it said it did not have data to show if the practice was occurring and what amount of salary sacrifice contributions were being used.
“Employers are required to report contributions made under a salary sacrifice agreement as ‘Reportable employer super contributions’,” the ATO said. “Specific salary sacrifice amounts cannot be distinguished from other items reported under this category, such as additional amounts paid to an employee’s superannuation fund as an annual bonus or employee negotiated increases in employer superannuation contributions.”
The tax office said a broad analysis of complaints and compliance cases had not identified such behaviour as being an issue bought to the attention of the ATO.