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By: Dennis Eagles, Lindsay Huynh
09 Nov 2022 3 min read
This will put the ATO in a very strong position to start data matching potentially leading to audit activity ahead. Now is the opportune time for businesses to ensure they are compliant.
If you run a business and you haven't started reporting through STP, you should as soon as possible because penalties may apply. STP works by sending an employee’s tax and super information to the ATO using an STP-enabled payroll or accounting software. The information includes salaries and wages, pay as you go (PAYG) withholding and superannuation liability information. ATO systems will then match the STP information to both the employer and employee records.
Similarly, when businesses pay employee’s superannuation guarantee contributions to their super funds, this data is sent electronically in a standard format to the ATO through Superstream gateway. SuperStream transmits money and information consistently across the super system between employers, funds, service providers and the ATO. It allows more timely and reliable flow of payments and information about contributions, rollovers, and certain release authorities. Superstream also provides an electronic record to support accounting and tax obligations with fewer data and payment errors.
As superannuation guarantee contribution data is made available to the ATO from both businesses and superannuation funds, the ATO can cross check and data match this information much easier than before. This potentially leads to a higher chance of conducting more audit activities and issuing penalties when businesses are not complying with their superannuation guarantee obligations. Hence, it is important to ensure your business is compliant and pays their superannuation obligation on time.
Additionally, as the data is also shared with various government agencies, including Centrelink, Services Australia & the Child Support Registrar, incorrect reporting may have a huge impact on your employees’ lives.
Our team of experts offer businesses a superannuation obligation health check in relation to whether you are paying employees superannuation contributions by the due date. Please don’t hesitate to contact us for a STP and superannuation health check for your business today to ensure that you’re compliant and avoid unnecessary ATO penalties.
The announced 30 per cent minimum tax on discretionary trusts creates significant challenges for private groups.
Succession is no longer just about who takes over. Many family businesses are using succession planning as a catalyst to reassess whether their current structure is still fit for purpose. As businesses scale, trust or partnership structures can become restrictive. Issues may include limited asset protection, challenges winning commercial contracts, reduced buyer appeal, and constraints on reinvesting profits to support growth.
Treasury has released draft regulations supporting the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026, which introduced the new Division 296 tax on superannuation balances exceeding $3m and $10m. The regulations provide the long awaited operational detail on how the new tax will work in practice, particularly for defined benefit interests, large Australian Prudential Regulation Authority funds and Self-managed Superannuation Funds.
