Australian Treasury Issues Draft Amendment to Impose Director Liability for Superannuation Obligations
Under new legislation that has been introduced into Parliament, directors would be personally liable for their company?ÇÖs unpaid superannuation guarantee amounts. When a company fails to meet its superannuation funding obligations, the Commissioner of Taxation would be authorized to step in and assess personal liability against the directors for the unpaid amounts. This is in addition to liability that directors could face for pay-as-you-go tax withholding liability. In addition, the Commissioner of Taxation would no longer be required to give 21 days notice before starting proceedings against directors. The proposed legislation can be found here.
The Ministry of Finance issued changes to Regulation 909 that would (1) enable the proclamation of the ?Ç£retired member?Ç¥ provisions in the PBA; (2) implement immediate vesting for plan members and increase the threshold for the small pension payout rule; (3) further clarify the surplus payment rules; and (4) reflect changes to the Income Tax Act (Canada) regarding Individual Pension Plans. Draft Regulations are here. Discussion paper can be found here.