Superannuation ‘sleeper issue’ could haunt late-paying employers

A mid-tier firm has spotted a “sleeper issue” with an employer’s superannuation guarantee obligations which may mean firms are unaware of the interest they owe where they miss payments.

Speaking at HLB Mann Judd’s 2018 Tax Series, partner Mariana von-Lucken said the ATO has been providing a sort of administrative concession with regards to the super guarantee charge (SGC) when an employer fails to pay the minimum amount by the due date.

According to the ATO, the SGC is made up of the SG shortfall amounts, a 10 per cent interest on those amounts owed to employees and an administration fee of $20 per employee, per quarter.

However, Ms von-Lucken said the ATO had been providing a concession where they only calculated interest from the due date of the SG to the actual payment date, which firms may have become accustomed to. Without that concession, interest would accumulate from the quarter start date to the date the SGC forms were submitted. This concession can, technically, be revoked at any time.

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