One of the anomalies of the super guarantee system is the inability of employees to force employers to make contributions payable under the system. That could soon change, with proposed changes to the Fair Work Act 2009 which would allow employees to force employers to make contributions to avoid the liability to pay the super contribution charge under the Superannuation Guarantee Charge Act 1992 (SG Act)

While a welcome measure for employees, it should be noted that the proposed measure will only apply to employees (not contractors) and only to contributions under the SG Act (not contributions agreed to be made over and above that – although there is likely to be contractual remedies for that). An employee will not be able to force contributions to the extent that a super guarantee charge has already been paid by the employer or where the ATO has commenced proceedings against the employer for a super guarantee charge.

Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163
E: pbroderick@sladen.com.au

Jan Harnischmacher
Lawyer
T +61 3 9611 0158
E jharnischmacher@sladen.com.au