With legislation extending single-touch payroll agreed upon in the Senate last week, the Australian Taxation Office (ATO) will gain an unprecedented view of small business superannuation payments.
As a result, there will be new penalties for businesses who do not pay their workers the superannuation guarantee.
The extension of single-touch payroll for all employers by July 1 2019 will mean that businesses will be required to report salary and superannuation payments to the ATO in real-time.
New ATO powers will mean the tax commissioner will be able to order an employer to pay an outstanding super guarantee amount, or require employers and their staff to complete education courses if they fail to pay.
These changes are designed to make up for the shortfall of the multi-billion superannuation payments.
Failure to adhere to the new legislation could result in a fine of up to $10,500 or even 12 months imprisonment.
There are concerns within the small business community that it will mean business owners spending hours on complicated paper work.