ATO Commissioner flags unpaid SG crackdown

The Australian Taxation Office (ATO) has signalled a crack-down on unpaid superannuation guarantee (SG) entitlements.

The Commissioner of Taxation, Rob Heferen has used an address to the Tax Institute to signal the crack-down as part of a broader ATO strategy to deal with $50 billion in collectable debt.

He said that, largely due to adjustments through COVID, collectable debt is now over $50 billion, “with our broader debt book over $100 billion, compared to total collections in 2023–24 of around $600 billion”.

“It’s the largest it’s ever been, and it’s money that could be benefitting all Australians,” Heferen said.

“This debt is not disputed, most of it has been self-reported, and it’s largely made up of amounts that have been withheld from employees’ wages, and collected from consumers as GST – but not passed on to Government. Even more worryingly, it includes some employee entitlements, such as superannuation,” he said.

“Unpaid tax and super contradicts a fair tax system. These are two things I will address. Why now, you may ask? Well, it’s our job to collect tax in accordance with the law. Paying tax isn’t optional and it’s our responsibility to ensure a level playing field.”

“This is critical for supporting other creditors and businesses who are doing the right thing and paying on time, and who themselves can often be left out of pocket by businesses who aren’t taking steps to manage their financial situation,” the Tax Commissioner said.

“You can expect that we will be firmer and faster in dealing with unpaid GST, PAYGW and super. We have also tightened up on payment plans and general interest charge remissions, and will be looking closely at lodgement deferrals and penalty remissions, to reinforce the level playing field,” Heferen said.