The Australian Taxation Office said small business owes the vast majority of more than $2 billion in collectable superannuation debt.
The use of the courts – largely as a last resort – is evidence of the tougher tax debt collection policies the ATO has pivoted to, away from its pandemic-era leniency.
Council of Small Business Organisations Australia chairman Matthew Addison said all economic indicators suggested consumer spending is down, which was increasing pressure on small businesses. The ATO estimates around 94.1 per cent of Australian businesses are paying superannuation contributions without intervention from the tax office.
“Because there’s no immediacy to the request from employees about super, there’s just this assumption it’s going somewhere, then if a business does become insolvent, it’s very common to see significant underpayment of superannuation.” It means that an employer who fails to pay superannuation could also leave their employee uninsured. He said introducing payday super would go a long way to rectifying the problem.
“But, that has to change going forward. Payday super is an interesting vision, but it requires wholesale change in the administration of superannuation data and payments.”
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