The Australian Taxation Office (ATO) has released its latest annual statistical results for the 2022–23 financial year, highlighting the compliance landscape of employer obligations related to the Superannuation Guarantee (SG). It provides insights on how employers are meeting their SG obligations and the ATO commitments to ensuring employers meet their SG obligations. The SG is a pivotal element of Australia’s superannuation system, representing the minimum mandated percentage of ordinary time earnings employers must contribute to their employees’ superannuation funds.
Key Takeaways from the ATO’s Annual Compliance Results are outlined below. A snapshot of the ATO super guarantee compliance 2022-23 results can be viewed here:
1. Compliance Rate: Employers have shown a strong compliance rate, with over 94% of the SG being paid without the need for ATO intervention.
2. Super Guarantee Charge (SGC) Liabilities: The ATO raised $1,130 million in SGC liabilities through voluntary disclosures and compliance actions.
3. Distribution of Funds: A significant amount of $683.8 million was distributed to super funds and individuals.
4. Finalised Cases: Approximately 14,000 SG cases were finalised, resulting in $447 million SGC liabilities and $157 million in Part 7 penalties. Of the 14,000 cases conducted by the ATO, 14,400 were from employee notifications and 1,400 from ATO initiated reviews.
5. Employee Notifications: Employee notifications of non-compliant employers to the ATO played a crucial role, with 12,600 cases leading to $379 million in SGC liabilities.
6. Employees Impacted: The 2022-23 SG compliance undertaken by the ATO raised super entitlements for 216,000 employees.
The ATO’s firm approach to SG compliance underscores the importance of employers adhering to their superannuation contributions obligations. The ATO provides various resources to assist employers in understanding and fulfilling their SG requirements. Employers should be aware of and adhere to their SG requirements to avoid penalties and ensure their employees’ superannuation contributions are correctly managed.
The ATO’s annual statistical results offers valuable insights into the current state of SG compliance and the measures taken to enforce it. For a comprehensive understanding of the ATO’s compliance efforts and the implications for employers, the full report can be accessed through the ATO’s website here.
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Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.