The ATO is hitting employers with rolling Super Guarantee (SG) Audits as it toughens its stance on outstanding super. Where in the past an ATO audit was more of a self-correction mechanism, employers who are continuously not meeting their obligations are being subject to a rolling series of audits and the ATO are applying the full suite of penalties.
This rubs salt into the wound seeing that the Government still hasn’t enacted the Superannuation Guarantee Amnesty Bill that was introduced into Parliament on 24 May 2018. This amnesty would be a once-off opportunity for employers to self-correct without penalty. If enacted, this amnesty would apply retrospectively to voluntary disclosures made during the period 24 May 2018 to 23 May 2019.
Businesses need to check they are satisfying their SG obligations and if not, action appropriately and promptly. Otherwise, it will be a substantial cost down the track in the event they are audited or subject to review by the ATO.
We advise attending to voluntary disclosures by 23 May 2019 to ensure the best chance of having penalties reversed and allowing the business to claim a tax deduction for outstanding payments – which will not happen after this date.
Contact us today if you have any queries, or need assistance getting outstanding super up to date.