ATO’s compliance approach
The ATO works with employers by providing tools and calculators to help them understand and meet their super guarantee (SG) obligations and ‘get it right’.
The ATO’s compliance approach supports employers who engage with them and want to get things right. They do take firmer action for those unwilling to meet their obligations. The approach is based on the relevant facts and circumstances of each case.
In some cases, an employer may be subject to a SG audit.
If you are unsure what action to take for your situation, phone us on 07 4963 4800.
The super guarantee charge and penalties
Employers who do not make the right amount of super contributions to a super fund by the due date are required by law to lodge a superannuation guarantee charge statement (SGC statement) and are liable for the super guarantee charge (SGC).
Additional penalties are imposed under Part 7 of the Superannuation Guarantee (Administration) Act 1992 (SGAA) on employers who fail to provide a SGC statement for a quarter by the due date, or fail to provide information relevant to assessing their liability to pay the SGC for a quarter after being requested to do so.
Employers who actively engage with the ATO
These employers maintain regular contact, provide all information requested or take any corrective action required by the ATO.
The ATO is unlikely to impose additional penalties for employers who engage with them and have a compliance history that demonstrates they have been generally compliant with their superannuation obligations.
Employers experiencing difficulty meeting their obligations
Employers that are experiencing difficulty meeting their super obligations are encouraged to make a voluntary disclosure. Where this occurs, the ATO has the discretion to consider partial or full remission of the part 7 penalty to ensure that employers are treated appropriately.
Remission will be considered based on the circumstances of the case. Particular emphasis will be placed on the degree that the employer has attempted to comply and their compliance history. For example, remission may be provided to employers who lodge a SGC statement after the relevant due date, but before audit action was started.
If you are unsure what action to take for your situation, phone us on 07 4963 4800. The ATO can provide assistance to complete a SGC statement and, where you are unable to pay on time, help work out a payment plan.
Employers who are unwilling to meet their obligations
If employers fail to engage with the ATO by not replying promptly to correspondence or not actively taking steps to resolve their SG discrepancy, the ATO will take stronger compliance action, including imposing additional penalties.
They may also issue an estimate of an SGC liability, a garnishee notice or a Director Penalty Notice.
The ATO takes this approach with employers who:
- repeatedly fail to pay the correct amount of SG
- attempt to obstruct the ability to determine an SGC liability
- repeatedly fail to keep appointments
- repeatedly fail to supply information without an acceptable reason
- deliberately supply information that is irrelevant, inadequate or misleading
- engage in any culpable behaviour to delay the provision of information
The team at Flor-Hanly can provide bookkeeping and payroll services for your business, including data entry, bank reconciliations and payroll. Call us in Mackay on 07 4963 4800.