ATO Gets Serious About Super Guarantee Obligations

The tax office are planning a mailed letter campaign to remind Australian employers of their super guarantee obligations.

Recently, new data has enlightened the ATO of certain businesses that may not be meeting their superannuation obligations to employees.

As a result of the single touch payroll introduction, the tax office have become acquainted with this robust data regarding what contributions are/aren’t being made.

This amplified transparency means that business owners will now struggle to get away with illegally underpaying super to their employees. In most cases, the director of the business or company is personally liable for any tax debts, including super guarantee obligations.

The ATO’s warning around SG comes not long after a potential super guarantee amnesty was discussed in Parliament.

Under existing law, if you missed a payment or haven’t paid an employee’s super on time, you are required to lodge a Super Guarantee Charge (SGC) statement and the pay the SG charge on any SG shortfall amounts.

The SG amnesty would provide employers a one-off opportunity to self-correct historical non-compliance with their superannuation guarantee. Essentially, it would allow corrections to be made between the period starting 1 July 1992 to 1 January 2018.

Some employer penalties might also be waived if the SG amnesty passes Parliament.

If you are uncertain about your obligations as an employer, you can speak to a small business tax champion, or discover relevant information on the ATO website.

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