Working with the Tax office when times get tough

The most common unnecessary audit that I see in the industry is in relation to business owners not paying their employee super on time. This is usually a problem to do with cash flow.

Why is this important?

It’s because the ATO now use a super stream, which came into effect recently, to collect information on when you pay your super for employees and how much you pay per employee. The ATO will over time use this to generate automatic audits for your business if they find that several employees don’t tend to stack up in terms of their pay in the tax return can pay into the super going in the industry fund.

The penalties for not lodging on time are interest at around 12% and an admin fee of $20 per employee per quarter, which can add up very quickly. The solution is making sure you keep track of the quarterly super for your employees, so you know how much it is, you plan to pay it before the 28th day of the end of each quarter, and if you’re having trouble in terms of cash flow, you need to speak to your accountant on a regular basis to cater for that cash flow, and if necessary, arrange for a payment arrangement with the ATO to meet that necessary payment.

I hope you’ve found this information useful and if you’d like further information please feel free to email us via