“Draconian” SG non-compliance penalties damaging small businesses
Penalties imposed on employers for failing to pay the super guarantee (SG) could be seriously damaging small businesses, the Institute of Public Accountants (IPA) has warned, and more red tape could be on the way.
Presently, non-complying employers would be required to “onerous charges” of both the total of their total SG shortfalls for the year and nominal interest and administration fees for that quarter.
They could also be liable to pay an additional SG penalty of up to 200 per cent of the SG charge payable should they fail to lodge an SG statement to the Commissioner.
The IPA labelled such punishments “draconian,” saying that it could damage small businesses struggling with cash flow issues.
While IPA chief executive officer, Andrew Conway, acknowledged that employers should make timely and accurate superannuation payments on behalf of their staff, he slammed the penalties for failing to differentiate between offenders.
“Let’s get human and … not tar every small business with the same excessive compliance brush,” he said.
Conway said “a more measured approach” to non-compliance was needed, with the “draconian” measures needing to go before new measures, such as education, imprisonment or directions to pay, were added.
AUTHOR
Hannah Wootton
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