ATO's Enhanced Powers: What Employers Need to Know
As the Superannuation Guarantee (SG) amnesty wraps up, the Australian Taxation Office (ATO) is gearing up with more tools to ensure compliance from employers. Here's what's new:
1. Single Touch Payroll (STP)
Employers must now report tax and superannuation info to the ATO through STP whenever they pay salaries or wages to employees, except for limited exceptions.
2. Member Account Transaction Service (MATS)
Under MATS, superannuation funds report contributions received to the ATO through SuperStream. This includes employer contributions, helping the ATO track employer compliance.
3. Direction Orders
The Commissioner can now direct employers to pay unpaid superannuation guarantee, with non-compliance becoming a criminal offense. Employers might also be required to undergo superannuation guarantee education courses.
4. Director Penalty Regime
Directors of companies failing to pay SGC liabilities in full by the due date may be personally liable for the unpaid amount. This applies to SGC liabilities from June 2012 onwards.
5. Security Deposits
The ATO can demand security deposits from entities at risk of ceasing business operations, ensuring future superannuation liabilities are covered.
Implications After the SG Amnesty
If a disclosure is made after September 7, 2020 (the end of the amnesty period), the Commissioner's ability to reduce Part 7 penalties may be limited. Penalties may not be reduced below 100% of the SGC payable if certain conditions are met, particularly if the employer failed to disclose relevant information during or before the amnesty period.
However, exceptions may apply in cases of exceptional circumstances preventing disclosure or for SG shortfalls from April 1, 2018, onwards.
For any questions or assistance, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.
- Superannuation Guarantee Amnesty (1) – Employers’ Obligations
- Superannuation Guarantee Amnesty (2) – Consequences for Not Meeting SG obligations
- Superannuation Guarantee Amnesty (3) – Eligibility for The SG Amnesty
- Superannuation Guarantee Amnesty (4) – Benefits from The SG Amnesty
- Superannuation Guarantee Amnesty (6) – Contributions Made Under the SG Amnesty (1)
- Superannuation Guarantee Amnesty (7) – Contributions Made Under the SG Amnesty (2)
