ATO crackdown on companies failing to pay super
The Australian Taxation Office (ATO) has retrieved $8 million in worker's superannuation entitlements from labour-hire company operators in South Australia and Victoria after they participated in "phoenix behaviour".
The ATO found the companies, which ran services such as meat packing and seasonal fruit picking, had not paid workers their super entitlements.
The ATO was recently given new powers known as superannuation guarantee estimates, where they can intervene if they see phoenix activity and hold companies responsible for not paying super entitlements before they try to liquidate to escape responsibility.
"The ATO can also issue director penalty notices, which make directors personally liable for the company's unpaid superannuation obligations," deputy commissioner Michael Cranston said.
Phoenix behaviour is where companies purposefully trying to liquidate to avoid paying super obligations and other tax liabilities, and to avoid paying creditors and suppliers.
The ATO can deal with this problem in real-time by estimating the company's super obligations and raising a debt on the company or its directors before the company goes into liquidation.
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