ATO criticised on super surcharge admin
The Australian National Audit Office (ANAO) has criticised the Australian Taxation Office (ATO) over its administration of the superannuation contributions surcharge, pointing to a range of important deficiencies.
In an audit report tabled this week, the ANAO said that the ATO’s administration of the surcharge “had not been managed well and pointed to deficiencies relating to past surcharge governance arrangement, systems, processes and controls and surcharge compliance.
In making the criticisms, the ANAO acknowledged that the ATO had been presented with a difficult challenge involving a complex collection mechanism and the pressures which had flowed from amendments to the surcharge legislation and the introduction of tax reforms.
As well, the ANAO said there had been a reduction in ATO funding for the surcharge.
Seventeen recommendations have flowed from the ANAO’s adverse report including better planning and risk management, improved procedures and systems documentation and the development of a robust surcharge compliance framework.
In responding to the ANAO report, the ATO said overseeing the surcharge had been one of its most difficult challenges, because of the environment in which it had been introduced.
It said that at the time of the surcharge introduction the ATO had been under considerable pressure, implementing numerous amendments to the superannuation legislation and the introduction of a major tax reform program.
“The ATO has not performed to the high standard the community expects,” the ATO’s response said. “The ATO is dedicated to addressing these shortcomings and has made significant progress to ensure they do not recur.”
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
