ATO re-distributes $700m in super charges

The Australian Taxation Office (ATO) has revealed over $1.13 billion in superannuation guarantee charge (SGC) liabilities were raised during the 2022-23 financial year, of which $683.8 million was recovered and redistributed.

The entitlements were given back to super funds and individuals, after voluntary employer disclosures, employee complaints and ATO-initiated compliance action raised the funds.

In the last financial year, there were 14,000 superannuation guarantee (SG) audit cases that issued over 130,000 reminders and prompts and eventually raised over $685 million in liabilities including penalties. Over 55,000 employers voluntarily admitted to $445 million in liabilities.

“Super belongs to employees for their future retirement savings and we do everything we can to ensure Australia’s hard working employees are receiving their lawful entitlements from their employers,” ATO Deputy Commissioner, Emma Rosenzweig, said.

“Unpaid super not only affects employees’ entitlements but it also raises other red flags that a business may not be viable. If you’re an employer who is struggling to pay super, we recommend you reach out to us or your registered tax professional quickly to help avoid getting into a situation you can’t resolve.

“‘The earlier you engage, the better the outcomes for you and your staff.”

Employers are subject to the SGC if employees’ super is not paid in full, on time and to the correct fund.

“We know that mistakes can happen, but it’s our responsibility to ensure a level playing field for all businesses,” Rosenzweig said.

“The sooner we know about unpaid super, the greater chance we have to recover it and work with the employer to get them back on track.”