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Make sure your Super Contributions are Tax Deductible!

Superannuation Non-Compliance – An ATO Focus

As a business owner, don’t miss out on tax benefits and pay unnecessary penalty fees when paying your super.

With the recent rollout of Single Touch Payroll to ALL employers, the ATO are now using this tool to identify non-compliance in the superannuation area.

With STP, each employers’/employees’ payroll information is immediately (digitally) sent to the ATO each time a pay run is completed. This includes data on Wages, PAYG Withholding and Superannuation.

The ATO have recently announced that they are currently reviewing payroll transactions for the April-June Quarter of 2019. The findings are that 85% – 90% of Superannuation Contributions ($ value) were paid on time*.

It’s critical to note Superannuation paid on time is a deductible business expense whereas Super paid late is not deductible. (BUT it is still a cost)

It is clear the ATO are now actively using STP data to identify non-compliance. The ATO will be contacting some employers who have paid superannuation late. Additionally, as a pre-emptive measure, the ATO will be sending due-date reminders to selected employers.

Connolly & Associates Accountants believe that this data-matching by the Tax Office will only increase going forward. Meaning it is essential to pay all superannuation on time.

Super Guarantee Charge

If employers do not pay the Super Guarantee for their employees by the due date, they will incur the Super Guarantee Charge (SGC)

This charge is made up of the original superannuation guarantee amount, combined with interest of 10% and an administration fee of $20/employee/quarter. In addition to this an SGC Statement must be lodged. The Super Guarantee Charge is also non-tax-deductible. 

As a business owner, don’t miss out on tax benefits and pay unnecessary penalty fees when paying your super. Accordingly when faced with a cash flow deficiency, non payment of Superannuation on time should be the last resortIe Pay the Super Guarantee on time and defer another expense, even if it must be a tax payment or a GST remission.

* Source: ATO - Presentation to the Australian Institute of Superannuation Trustees (AIST) 2019 AIST Chairs Forum

If you require any assistance or simply require more information, please contact our accounting team at Connolly & Associates on 08 9266 0000.


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