What You Need to Know about Superannuation Compliance

While late superannuation contribution payments have always been an area of focus by the ATO with significant consequences to employers who do not comply, this focus has been increasingly elevated  through Single Touch Payroll (STP) Phase 2 data. With this enhanced tool, the ATO can now monitor superannuation guarantee (SG) contributions in more detail than ever. This shift is important for businesses to understand, highlighting the need for careful and timely superannuation payments.

While many business owners may think they’re already familiar with these requirements, the reality is that the ATO’s increased oversight is bringing significant changes.

Let’s break down what this means for you, the business owner.

Timely Super Payments Are Now Under the Microscope

The most crucial change that business owners need to be aware of is how closely the ATO is tracking superannuation payments. They can now monitor these payments in real-time, month by month, and quarter by quarter. This detailed view lets the ATO quickly identify late payments and missed super guarantee charge statements.

Super contributions are due quarterly by the 28^th day after quarter end.  It is an employer’s responsibility to ensure that super contributions reach employees’ super funds on time. Simply paying the Super by the due date is not enough, it must be paid early enough to make its way through the clearing house and reach the employee’s super fund by the due date.

The ATO can now see precisely when those contributions hit employees super funds. If they’re late, penalties could apply, and ignorance won’t be a defence.  An SGC Statement will need to be prepared and lodged for each late quarter and will help calculate:

• Interest charged on late payment
• An admin fee of $20 per employee and
• Super will be payable on payroll items it would not be payable on if it were paid on time.

Stay on Top of Super Reporting

With the ATO now using STP2 data to match employer records with superannuation payments, it’s easier than ever for them to spot errors. Any mistakes in reporting super contributions can be quickly identified if they don’t align with what’s been paid.

Business owners should take this opportunity to review their superannuation reporting processes and ensure all contributions are reported correctly and on time. With the ATO’s improved data-matching, even small errors could lead to a review, extra scrutiny, or costly penalties.

The ATO is Being Proactive

One of the most significant shifts in the ATO’s use of STP2 data is their proactive approach to identifying non-compliance. It may have been easier for some issues to slip under the radar in the past, but not anymore. The ATO’s expanded data capabilities mean they’re actively looking for discrepancies and late payments, even before a business realises there’s a problem.

This makes it more critical than ever for business owners to stay informed about their superannuation obligations. If a business is found to be non-compliant, simply not knowing or misunderstanding the rules won’t be a valid excuse. The consequences of non-compliance can be severe, including hefty penalties, extra scrutiny, and potential damage to the business’s reputation. It’s essential to stay on top of the requirements, keep records accurate, and make sure contributions are paid on time.

The expanded use of STP2 data means that the ATO can catch issues previously unnoticed. While this may seem daunting, it also presents an opportunity for businesses to identify and rectify any compliance issues before they escalate. Businesses can no longer afford to assume that everything is fine without doing their due diligence.

The Importance of STP2 Data

Helping Clients Understand the Importance of STP2 Data

Many business owners may still think the ATO’s message hasn’t changed much, but this isn’t accurate. The ATO is now more equipped than ever to monitor compliance, and business owners who fail to adapt to these changes could face significant consequences. Bookkeepers can help to guide businesses through this transition and explain the real impact of the ATO’s increased scrutiny, emphasising the serious consequences of non-compliance.

What Beam ARE doing for our Clients

To avoid any issues, we are taking a proactive role in ensuring our clients understand the new environment. Our clients will receive clear, actionable guidance on how to stay compliant. This might include:

• Regularly reviewing superannuation payment schedules to ensure contributions are made on time.
• Education on how long payments take to process through different clearing houses.
• Double-check SG reporting to ensure everything is accurate and up to date.
• Emphasis on the ATO’s ability to monitor super payments in real-time is a significant development.

By reinforcing the seriousness of these changes and offering practical advice, Beam can help our clients avoid penalties and stay on the right side of the ATO’s new superannuation compliance regime.