On 2 August 2013, the Federal Labor Government announced that it
will provide additional resources to the Australian Taxation Office
(ATO) for the purpose of detecting and collecting unpaid employer
superannuation contributions.
Underpaying superannuation or making late payments of
superannuation (even one day late) will generate significant
penalties for employers. As well as paying to the employee the
shortfall amount, the employer must also pay a penalty equal to the
shortfall, plus interest at 10% per annum and an administration fee
of $20 per employee per quarter. Further, employers lose the tax
deduction that would normally be available to superannuation
payments made. The total financial costs to businesses found to
underpay their super or pay it late is substantial and there is no
discretion for the ATO to waiver or reduce these penalties.
