On 2 August 2013, the Federal Labor Government announced that it
will provide additional resources to the Australian Taxation Office
(ATO) for the purpose of detecting and collecting unpaid employer
Underpaying superannuation or making late payments of
superannuation (even one day late) will generate significant
penalties for employers. As well as paying to the employee the
shortfall amount, the employer must also pay a penalty equal to the
shortfall, plus interest at 10% per annum and an administration fee
of $20 per employee per quarter. Further, employers lose the tax
deduction that would normally be available to superannuation
payments made. The total financial costs to businesses found to
underpay their super or pay it late is substantial and there is no
discretion for the ATO to waiver or reduce these penalties.
Recent changes to the superannuation legislation also mean that
company Directors may be held personally liable for any unpaid
superannuation contributions as well as the associated interest and
administration charges associated with the shortfalls.
In the past the ATO has regularly undertaken reviews of
superannuation systems across a variety of industries and business
sizes. The penalties imposed have generated considerable revenue
for the ATO. With the increased resources now to be provided to the
ATO by the Government, it can only be assumed that the regularity
and size of these reviews will be increased.
As such, considering the potential financial penalties and
increased scrutiny, it is crucial that employers take the
opportunity now to review their internal systems and ensure that
superannuation payments are being made correctly and
Moore Stephens regularly conducts Superannuation Reviews in
businesses, aimed at assessing whether superannuation guarantee
obligations are correctly adhered to and whether appropriate
systems, policies and procedures are in place.
The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
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