Directors liable for unpaid super guarantee

16 November 2012
| By Staff |
image
image
expand image

Directors will now be accountable for their company's outstanding superannuation guarantee charge (SGC) under new laws.

According to the Australian Taxation Office (ATO), companies have two weeks to ensure their super guarantee obligations are up-to-date for the June quarter - or directors risk having to pay the guarantee themselves.

"These new laws protect people's retirement incomes from employers who deliberately try to avoid their superannuation obligations," Tax Commissioner Michael D'Ascenzo said.

"If you are a director whose company has not paid the super guarantee for the June quarter and your company does not lodge the overdue SGC statement with the ATO by 28 November, the only way to avoid your personal liability will be to pay the outstanding SGC."

Additional penalties will apply where the SGC statement is not lodged by the due date, the ATO stated.

D'Ascenzo has encouraged companies that are having difficulties in meeting their super obligations to contact the ATO.

Under the director penalty regime, if a company is unable to fund its tax obligations, the director may be required to place the company into liquidation or voluntary administration.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago