Late Superannuation payments can be costly and the ATO now has ‘real time’ access to your mistakes

By Cathi Norman - March 16, 2020

The ATO is using Single Touch Payroll information from employers and Member Account Transaction Service data from superannuation funds to identify employers that are late in paying superannuation contributions.

A superannuation contribution will be late if it is not received by a superannuation fund by the due date.

Unless a business is using the ATO Small Business Superannuation Clearing House, there can be delays of up to 10 days between the date a superannuation contribution is paid and when the contribution is received by a superannuation fund.

If your business is either not using or is not eligible to use the ATO Small Business Superannuation Clearing House, are you:

  1. allowing for processing time when your business makes superannuation contributions; or
  2. just paying on the quarterly due date?

If it is the latter, then the contributions are unlikely to be received by the superannuation fund on that day and you will be required by law to lodge a Superannuation Guarantee Charge statement and pay outstanding amounts - including added interest and a mandatory administration fee.

There is no discretion or leeway under the law for the ATO to waive these requirements and the ATO has commenced a campaign to advise businesses that they need to lodge Superannuation Guarantee Charge statements.

Businesses that do not lodge Superannuation Guarantee Charge statements as required are likely to be subject to further contact from the ATO, including audits and penalties, as the Superannuation Guarantee amnesty only applies to historical payments up until 31 March 2018.

How we can help

Please contact us if you are:

  1. having problems in getting on top of the superannuation obligations of your business; or
  2. require assistance in dealing with an ATO review.

Contact our experts


Other articles


 

Top of Page







IN THIS SECTION:


Rob Southwell

Rob Southwell's picture

Sydney

Managing Partner and Partner – Private Business and Family Advisory


> View profile

Nigel Fischer

Nigel Fischer's picture

Brisbane

Managing Partner - Private Business and Family Advisory


> View profile

Michael Minter

Michael Minter's picture

Newcastle

Managing Partner


> View profile

Leon Mok

Leon Mok's picture

Perth

Managing Director


> View profile

Brendan Britten

Brendan Britten's picture

Melbourne

Managing Partner and Executive Director/Partner- Business Advisory and Assurance


> View profile

Ben Brazier

Ben Brazier's picture

Adelaide

Managing Principal


> View profile



Partnership fraud

SUCCESS

Paperwork and independent advice saves partnerships from fraud

Discover more

Kia Ora Horse Stud

CASE STUDY

Pitcher Partners fills a Financial Manager gap to keep the business on track

Discover more

Fuel Injection Company Administration

LEADERSHIP

A fuel injection company began life as an Australian public company before being acquired by a UK publicly listed company while in the research and development stage of a “green...

Discover more



@PitcherPartner LEADERSHIP | Client care is more important than ever as businesses & individuals navigate these challenging times.… https://t.co/G5Bw6ZfczG