Employer Superannuation Guarantee – ATO set to roll out “nudges”

Employer Superannuation Guarantee – ATO set to roll out Employer Superannuation Guarantee “Nudges”

Speaking at the 2019 ASFA National Policy Roadshow, James O’Halloran, the ATO Deputy Commissioner, Superannuation and Employer Obligations, said that with the implementation of Single Touch Payroll (STP) and new reporting changes for APRA-regulated funds, the Tax Office now has greater visibility over the super system than it ever had before.

With that greater access to data, the ATO’s immediate focus is to reduce non-payment of super guarantee (SG) by employers through early detection and a proactive “nudge” approach, for example, directly notifying or nudging employers the ATO identified as not having paid superannuation guarantee (SG) to their employees per quarter as required.

The ATO recently piloted this approach with a small sample of 85 employers who were contacted regarding their late payment of SG. As a result, approx. 50 per cent of these employers then lodged and paid the outstanding SG to the ATO for their employees.

The ATO intends to expand this approach to those employers who haven’t paid SG to their employees within 30 days after the end of the reporting quarter.

With STP now law for businesses of all sizes, Mr O’Halloran said businesses can now expect the ATO to be able to detect where an employer may not be correctly calculating their employees’ SG, allowing them to intervene and assist before the amount is even due for payment.

Mr O’Halloran said that while the immediate benefit to individuals who are being underpaid their super entitlements is apparent, this visibility and the ATO’s ability to proactively engage with employers who don’t meet their obligations, means that the ATO can also better ensure a level playing field for business, particularly small business.

Please contact us if you would like to discuss your Superannuation Guarantee obligations in more detail.