Summarised below are the ATO’s super guarantee annual employer compliance results for 2023–24
The Tax Office finalised 23,600 super guarantee (SG) cases in total during the 2023–24 financial year, resulting in $659M super guarantee charge liabilities. Read more »
This is part of the ATO’s revised (and aggressive) approach targeting businesses that fail to respond to unpaid tax and superannuation reminders.
Key points
Intensified focus on businesses that ignore unpaid tax and super notices
Stricter actions for those not responding to reminders, including SMS and letters
Prompt action urged to avoid penalties.
Key Changes to ATO Debt Collection
The ATO’s revised approach includes:
Director Penalty Notices (DPNs): Directors of businesses with outstanding Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, or superannuation guarantee charge (SGC) obligations who fail to engage will face quicker action, including the issuance of DPNs. Directors of multiple companies may receive DPNs that cover all related entities.
Garnishee Notices: The ATO may issue garnishee notices to financial institutions, employers or other businesses that hold funds for non-compliant companies or individuals.
Engaging External Debt Collection Agencies: From January 2024, the ATO has engaged Recoveries Corp to assist in the collection of overdue debts. Anyone who receives a call from debt collectors are urged to remain vigilant and verify the authenticity of the communication.
The ATO has emphasised that businesses failing to meet their tax obligations not only jeopardise their own financial health but also pose risks to other small businesses and employees. As a result, the ATO is implementing a more targeted strategy aimed at businesses that refuse to respond or set up payment plans.
It is best to take swift action on an outstanding tax debt. For those unable to pay their full obligations, payment plans can be set up through the ATO’s online services. It is important to note that taxpayers with debts under $200,000 can request these arrangements online through their tax agent or independently.
In cases of genuine financial hardship, there are additional options available, including deferred payments and interest remissions. However, address any outstanding issues proactively to avoid further penalties.
ATO phone campaign to recover debts
Stay cautious and never disclose personal information, such as tax file numbers or credit card details, over the phone. Always request a call reference and independently contact the ATO using a publicly listed number for verification.
If you have any concerns regarding the legitimacy of ATO communications, contact Collins Hume on 02 6686 3000. Our team is here to help you navigate these changes and ensure that your business remains compliant with the latest tax obligations and avoid costly interest penalties and fines.
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