The Write Advice

with Gordon Meggatt

Employer's super obligations - time is running out

The Australian Tax Office (ATO) is warning employers to ensure they fulfil their Superannuation Guarantee (SG) obligations or face an audit and substantial penalties on outstanding contributions.

Superannuation Guarantee is the employer-funded contributions made on behalf of eligible employees. It is an amount equivalent to 9% of an employee's ordinary-time earnings.

The warning follows the notification of 26,000 employers who have been identified as at risk of non-compliance as a result of Tax Office data-matching.

ATO is now following up some 21,000 of these employers who had not responded, asking them to clarify their position and ensure they understand their obligations.

Employers need to get their SG records in order and lodge a SG statement as soon as possible to avoid penalties mounting up.

Employers who have not fulfilled their SG obligations will be liable for added costs and charges including penalty interest of up to 200% of the amount owing.

A further 15,500 employers who came to the Tax Office's attention through employee complaints or through other compliance activities have been audited this financial year for failing to make SG contributions on time and in full.

From 1 July 2003, employers will be required to make SG contributions at least each quarter rather than at least once a year, as is currently the case.

Employers who are unsure of their obligations or who would like more information can contact the Tax Office Superannuation Infoline on 13 10 20 for the price of a local call or visit the website at www.ato.gov.au/super.