Unpaid Super - The ATO are watching employers

Discussion in 'Accounting & Tax' started by [email protected], 24th Jan, 2020.

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  1. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Recent changes to Tax Agent Online Services indicate that the ATO is tracking a new metric. Unpaid super. This applies for all taxpayers.

    They are quite guarded about this and an Asst Commissioner I know wouldnt discuss it citing its a work in progress and not a liability tracking and reporting tool. Yeah right. But here is what I can glean

    1. As employees are paid using Single Touch Payroll the ATO calculates a minimum estimate of super based on 9.% of gross earnings in certain categories. For STP employees this is more live that in arrears. For non- STP employees it is adjusted at year end for other unreported PAYG summaries as they are received OR when the final return is lodged.
    2. I suspect the ATO can us this information to ascertain on a ABN by ABN basis which employer liability is due
    3. When the employer pays super through a clearing house the "debt"is reduced to provide a ""Employer superannuation Contributions liability"". If a MyGov enabled taxpayer wants to check this its printed on their Income Statements Report for each employer for the 2019 year. Remember this a notional sum It is prone to error.
    4. When the respective funds lodge tax returns they report all contributions and their type eg concessional / employer. The ATO can match this v's the reductions allowed notionally in 3.
    5. This is a continually maintained balance so that late payments will clear the apparent liability.
    HOWEVER where a employer doesnt pay the liability it will accrue and expand. Whammo. Employers are in the targets for theft or miuse of employee super that is unpaid. The High Court in a decision considered that super is a element of payt and is a obligation, not a option.


    Employers can expect focus for non-compliance. The ATO may even be able to issue a default SGC notice or a Director Penalty Notice. The onus is then on the taxpayer to lodge the valid details or the Director /s are personally liable

    The data may also be shared with Fair Work Australia. Probably not at the employee level. Just the employer level to identify non-complying employers.

    Employees - You can now check several aspects of your super position in MyGov
    1. Super fund balances (updated when each fund lodges the 2019 year)
    2. Concessional contributions for the 2019 year.
    3. Live view of clearing house reported actual super contributiosn received by all funds ona fund by fund basis. Not truly live but close. Can be used to make decisions in June about extra super ! But be wary of last minute employer contributions.
    4. Unused 2019 concessional cap. Are you entitled to the new rule allowing catch up super contributions ? The ATO now tells you this number. Or f you are excluded

    And you can rollover in MyGov so that a single super account is maintained. Warning - The ATO are now able to do this without your consent !!! Take care with that as you may terminate insurance etc. The ATO are meant to write to you but may issue this letter through MyGov which few people check :eek:
     
    Scott No Mates likes this.
  2. thesuperman

    thesuperman Well-Known Member

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    Best to never have or sign up for a MyGov account.
     
  3. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
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    Posts:
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    Location:
    Sydney
    Yes. Its like spam without any phone call. I can always hang up on the fake NBN calls