ATO crackdown on unpaid super guarantees


ATO crackdown on unpaid super guarantees

Time is up for non-compliant businesses, with the ATO promising to chase and penalise businesses who are not paying super guarantee entitlements to employees.

By JIm Vass 

The 'softly softly' approach is over

During the past few years of natural disasters as well as the Covid-19 pandemic, lockdowns, travel restrictions, and public health rules etc etc etc, while small businesses were struggling, the ATO had said it was going to take a “nudge” rather than a “big stick” approach. The ATO also extended the superannuation guarantee amnesty for those businesses who have been remiss in paying their super contributions.

So if you are behind in super payments to employees, then now is the time to get organised.

The ATO has agreed to commit to all the recommendations made by the ANAO report including taking a more proactive approach to chasing non-compliant businesses. It has also mooted that there will be significant penalties for non-compliant employers.

Not paying super is unfair and illegal

Of course, this could occur sooner if the Labor Party is voted in at the Federal election – it has been very clear that a crackdown on unpaid super is high on its agenda.

It has also floated the idea of introducing rules which require an employer to pay super at the time of paying wages, rather than four times per year as currently legislated.

 The super guarantee can be onerous for some businesses going through tough times, especially during a cash flow crises, but it’s truly unfair to employees when their super isn’t paid.

Superannuation was introduced to fund the retirement of all working Australians, and every day it goes unpaid, is a lost opportunity for super to build and grow over the longer term.

It also doesn’t make sense if you’re a small business to put yourself in a position where you’re going to attract further financial penalties.

There are a number of ways you can manage your way out of a situation like this, so if we can help, contact us.


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