Over 266,000 small business employers are registered to use the clearing house on behalf of just under 2 million employees. In the year ending 30 June 2016, the clearing house processed 3.9 million payments totalling around $2.3 billion. This service assists a notable proportion of small business employers comply with their superannuation guarantee obligations. Characteristics and incidence of noncompliance Noncompliance by employers occurs when employers fail to make the correct superannuation guarantee contributions on time for employees. This can be because of an honest mistake through to intentional avoidance. Behaviours can be influenced by the nature of a business; the size of a business and cash flow management. Non-compliance is typically not spread evenly across the employer population. ATO compliance data shows it is more prevalent in small and micro businesses and in certain industries. Such incidence of noncompliance, while perhaps small in relative terms, has a very personal impact on employees who are not paid the correct amount of superannuation guarantee. It reduces their retirement income and diminishes community confidence in the system overall. Estimating the size of non-compliance The ATO is committed to estimating tax for the taxes it administers. Tax gap ‘gaps’ estimates are important for the ATO to understand compliance, inform its resource allocation and assess the effectiveness of its work over time against a trend benchmark. Estimating tax gaps generally, and the superannuation guarantee gap in particular, is consistent with contemporary international best practice in tax administration. has been a strong interest over recent years from Parliamentary Committees and other stakeholders for the ATO to undertake tax gap estimates. The ATO is seeking to complete a credible and reliable estimate of the superannuation gap, but at this stage it is not completed. One of the contributing factors is the lack of
Over 266,000 small business employers are registered to use the clearing house on behalf of just under 2 million employees. In the year ending 30 June 2016, the clearing house processed 3.9 million payments totalling around $2.3 billion. This service assists a notable proportion of small business employers comply with their superannuation guarantee obligations. Characteristics and incidence of noncompliance Noncompliance by employers occurs when employers fail to make the correct superannuation guarantee contributions on time for employees. This can be because of an honest mistake through to intentional avoidance. Behaviours can be influenced by the nature of a business; the size of a business and cash flow management. Non-compliance is typically not spread evenly across the employer population. ATO compliance data shows it is more prevalent in small and micro businesses and in certain industries. Such incidence of noncompliance, while perhaps small in relative terms, has a very personal impact on employees who are not paid the correct amount of superannuation guarantee. It reduces their retirement income and diminishes community confidence in the system overall. Estimating the size of non-compliance The ATO is committed to estimating tax ‘gaps’ for the taxes it administers. Tax gap estimates are important for the ATO to understand compliance, inform its resource allocation and assess the effectiveness of its work over time against a trend benchmark. Estimating tax gaps generally, and the superannuation guarantee gap in particular, is consistent with contemporary international best practice in tax administration. has been a strong interest over recent years from Parliamentary Committees and other stakeholders for the ATO to undertake tax gap estimates. The ATO is seeking to complete a credible and reliable estimate of the superannuation gap, but at this stage it is not completed. One of the contributing factors is the lack of
P2017_T200724.docx