Login
iscover
The Tax Office finalised 23,600 super guarantee cases during the 2023–24 financial year, resulting in $659 million in super guarantee charge liabilities.
Newsletter
Tax Office issues 8,710 DPNs over unpaid super in 2023–24
20 November 2024
•
12 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
The ATO has released its latest annual compliance results for superannuation guarantee, revealing that employers are currently paying 92.4 per cent of the SG they are required to pay without ATO intervention.
This was a decline from the 2022–23 financial year when employers were paying more than 94 per cent of the super guarantee they were required to without ATO intervention.
The ATO raised approximately $659 million in SGC liabilities during the 2023–24 income year, excluding interest, and $300 million in part 7 penalties.
The compliance results also showed that the total amount of super guarantee charge (SGC) collectable debt had increased to $2.15 billion at 30 June 2024, up slightly from $2.02 billion at the end of the 2022–23 financial year. $209 million or 9.7 per cent of the total SGC debt is currently under a payment plan.
The number of referrals from employees is also increasing with the ATO receiving a total of 28,100 referrals from employees, a jump from the 23,300 referrals received in the previous financial year.
The ATO also completed a significantly higher number of cases in the 2023–24 income year, completing 23,600 cases compared with 14,000 cases in the previous financial year.
==
==
With the ATO increasing its compliance activity on unpaid tax debts and super, it also issued significantly higher numbers of DPNs regarding unpaid super.
The ATO issued a total of 8,710 director penalty notices in relation to unpaid super for 6,500 companies. This was more than double the 3,660 DPNs issued in relation to unpaid super in 2022–23.
The Tax Office issued a warning to businesses last month, outlining its new compliance approach to unpaid tax and super.
"We are now focusing on businesses who refuse to engage with us and continue to ignore our SMS and letter reminders," the ATO said.
"This means you may see us taking different steps to those you have seen in the past. This is a deliberate and targeted approach, taking into account compliance history."
For businesses big and small, that don’t engage with us or set up a payment plan for unpaid GST, pay-as-you-go (PAYG) withholding or employee super, the ATO said it would move more quickly to firmer actions such as director penalty notices (DPNs) and garnishees.
"Directors of multiple companies who allow amounts of GST, PAYG withholding and employee super to go unpaid, and do not engage with us, can expect us to look at their debts more holistically," it said.
"These directors can expect to receive DPNs capturing the total value of these amounts across all related entities. If these directors don’t take action, we can recover these amounts directly from them, putting their assets at risk."
You are not authorised to post comments.
Comments will undergo moderation before they get published.