Legal news
In Part 1 of our Super Guarantee article series, we discussed the background to the super guarantee regime and an overview of how the regime operates. In Part 2, we looked at who will be covered by the super guarantee regime, and in Part 3 we specifically looked at when this will include certain contractors.
In the recent decision of JMC Pty Limited v Commissioner of Taxation [2022] FCA 750, the Federal Court found that an ‘independent contractor’ was an employee for super guarantee purposes.
In the recent Australian Administrative Tribunal (AAT) decision of Trustee for Virdis Family Trust t/a Rickard Heating Pty Ltd v FC of T [2022] AATA 3, the AAT relied on the decision in Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (Moffet) to find that a plumber who was engaged as a contractor was an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SG Act).
As previously discussed here, the May 2021 budget announcements included a number of changes aimed at increasing flexibility in the superannuation system. Some of these key changes have now been introduced to Parliament as part of the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 (Bill).
As part of the broader ‘Your Future, Your Super’ reforms, the concept of default ‘stapled super funds’ for employees will take effect from 1 November 2021. Where employees start work on or after 1 November 2021, and do not choose a super fund, most employers will have to check with the ATO if their employee has an account with an existing super fund, known as a ‘stapled super fund’, to pay the employee’s super guarantee into.
The super guarantee (SG) amnesty ended on 7 September 2020. The SG amnesty allowed employers to disclose and pay previously unpaid SG charge, including nominal interest, for the quarters between 1 July 1992 to 31 March 2018 without incurring the administration component or Part 7 penalties. In addition, payments of SG charge made to the ATO under the amnesty were tax deductible to the employer.
