Superannuation guarantee compliance – ATO’s priority in 2023–24
The ATO released their corporate plan for 2023–24 and announced superannuation guarantee (SG) compliance as one of the 8 key priorities to be focused on for administration purposes.
With many employers falling behind in paying their employees’ entitlements, the ATO has put a special focus on identifying and addressing compliance issues in a timely manner.
The corporate plan sets out the various tax and superannuation administration risks and planned strategies to manage the risks which include:
• increased focus on employer and superannuation fund reporting
• tools to support employers to self-correct SG issues and keep track of their obligations, and
• the creation of a transparent view for employees’ SG for all superannuation funds and all employers in one place.
ATO’s monitoring programs
Data matching
Announced as part of 2023–24 Federal Budget, in the 2023–24 income year, the ATO will dedicate resources to data matching programs in an effort to identify and act on cases of SG underpayment.
Payday Super
The federal government also announced “payday super”, which will require employers to make SG payments for their employees at the same time as their salary and wages.
From 1 July 2026, this proposed measure will require employers to pay their employees super at the same time as their salary and wages.
The ATO will reinforce and data match these payments with the Single Touch Payroll (STP) reporting systems, which will achieve full integration (STP rollout phase 2) before the commencement date of this measure.
Other matters
With ATO’S increased scrutiny on SG compliance, and quarterly payments ceasing to exist from the 2026–27 income year, businesses that employ staff must be advised to incorporate SG payments within their gross profit modelling as early as possible.
Current cash flow and compliance practices must also be reviewed to be better prepared for the timely payment of SG entitlements and adhering to the eventual increase in payment frequency.
With the commencement of data matching program in 2023–24 income year, any errors or discrepancies between STP reports and payroll reports must also be promptly rectified to avoid any ATO queries/audits and potential penalties that may arise due to incorrect reporting.
Contact us
We can guide you through any SG compliance queries that you may have based on your current or future circumstances. Please do not hesitate to contact us.
