New Approaches by ATO to Address Unpaid Superannuation

Increase in Compliance Measures:

This positive outcome was achieved through a combination of voluntary employer disclosures, employee complaints, and compliance actions initiated by the ATO. In fact, 14,000 superannuation guarantee (SG) audit cases were processed, resulting in more than 130,000 reminders and prompts being issued. Through these efforts, over $685 million in liabilities, including penalties, were identified. Furthermore, over 55,000 employers voluntarily came forward and declared $445 million in outstanding liabilities.

Protecting Employees' Rights:

The ATO's Deputy Commissioner, Emma Rosenzweig, emphasized the importance of safeguarding employees' superannuation entitlements. She stated, "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."

The repercussions of unpaid superannuation not only impact employees but also raise concerns about the financial stability of businesses. Rosenzweig encouraged struggling employers to seek assistance promptly, saying, "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."

Promoting Fairness and Compliance:

The ATO acknowledges that unintentional mistakes can occur, but it is committed to enforcing compliance and ensuring a level playing field for all businesses. Rosenzweig stated, "We know that mistakes can happen, but it's our responsibility to ensure a level playing field for all businesses. 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."

Employers are subject to the Superannuation Guarantee Charge if they fail to pay employees' superannuation contributions in full, on time, and to the correct fund. By promptly addressing non-compliance, the ATO aims to protect employees' financial security and maintain the integrity of the Australian superannuation system.