Directors liable for unpaid super guarantee
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.
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