AUSTRALIA - The Australian National Audit Office has found the majority of Australian government organisations are not meeting obligations which require the provision of superannuation contributions for certain contractors and consultants.
The audit report revealed that of the 78 contracts tested in the audit sample, only 25 were complying with the Superannuation (Productivity Benefit) Act 1988, which establishes super arrangements for Commonwealth employees.
ANAO’s latest audit was the first time the Office had looked at superannuation payments to independent contractors and was conducted to assess whether obligations were being met.
“The ANAO concluded that, generally, there was a lack of awareness of the requirements of the PB Act within Commonwealth organisations, even though some had sought legal advice and developed policies, procedures and standard contract clauses that incorporated superannuation requirements for independent contractors,” the report stated.
In response to the findings, ANAO issued a number of recommendations.
These included seeking clarification on: the boundaries between the PB and Superannuation Guarantee (Administration) Act 1992, whether there is a continuing role for the PB Act and if so, how it could be made less complex, and mechanisms for monitoring Commonwealth organisations’ compliance with the PB Act.
The 34 audited organisations included the Australian Federal Police, the Australian Taxation Office, the Family Court of Australia, the Australian Bureau of Statistics and a number of Federal government departments.
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