Latest Accounting News
Hot Issues
Businesses ghosting the ATO targeted in debt collection blitz
Claiming the tax-free threshold: getting it right
Aussies tired of ‘dodgy tax criminals’, warns ATO
Protect your small business by following these essential steps.
Super guarantee a focus area for ATO business debt collection
Controversial ‘Airbnb tax’ set to become law
Withholding for foreign residents: an ATO focus area
1 in 3 crypto owners confused about tax, study reveals
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
ATO reveals common rental property errors from data-matching program
New SMSF expense rules: what you need to know
Government releases details on luxury car tax changes
Treasurer unveils design details for payday super
6 steps to create a mentally healthy and vibrant workplace
What are the government’s intentions with negative gearing?
Small business decries ‘unfair’ payday super changes
The Leaders Who Refused to Step Down 1939 - 2024
Time for a superannuation check-up?
Scam alert: fake ASIC branding on social media
Millions of landlords the target of expanded ATO crackdown
Government urged to exempt small firms from TPB reforms
ATO warns businesses on looming TPAR deadline
How to read a Balance Sheet
Unregistered or Registered Trade Marks?
Most Popular Operating Systems 1999 - 2022
7 Steps to Dealing With a Legal Issue or Dispute
How Do I Resolve a Dispute With My Supplier?
Changes to Casual Employment in August 2024
Temporary FBT break lifts plug-in hybrid sales 130%
The five reasons why the $A is likely to rise further - if recession is avoided
June quarter inflation data reduces risk of rate risk
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 2 April - June 2007
Quarter 2 April - June 2006
Small business decries ‘unfair’ payday super changes

The seven-day payment window and closure of the ATO’s clearing house are expected to disproportionately impact smaller employers.



.


Small business groups are pushing back on the government’s payday super plan, warning the increased requirements will be “overwhelming” and result in employers being unfairly penalised for delays outside their control.


According to design details released by the Treasury on Wednesday, businesses will be given a seven-day window for payday contributions to arrive in employees’ super funds before they face daily interest charges.


The government also announced it would close the ATO’s Small Business Superannuation Clearing House, currently used by some 250,000 employers across the country.


In a joint statement, Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones said the changes, set to apply from July 2026, would incentivise employers to quickly disclose and rectify missed payments.


“[The changes will] increase the severity of consequences for employers that deliberately or repeatedly do the wrong thing,” they said.


But bodies such as the Council of Small Business Organisations of Australia, the Institute of Public Accountants, Institute of Certified Bookkeepers and the Australian Chamber of Commerce and Industry criticised the plan and said the government failed to consider the impacts on small businesses.


Payroll software, management costs to increase



COSBOA chief executive Luke Achterstraat said moving from quarterly to weekly pay cycles was an “overwhelming ask, particularly for small businesses already struggling with tight margins”. 


“Employers will be required to make up to 13 times as many payments, handle up to 13 times as many transactions, and ultimately incur up to 13 times the cost to ensure super reaches their employees accounts,” Achterstraat said.


“In the current economic climate, the focus should be on supporting small businesses, not increasing their administrative and financial burdens.”


Small businesses would also face higher subscription costs as payroll software companies charged more to reflect the demands of payday super, according to IPA senior tax adviser Tony Greco.


Closure of ATO clearing house opposed



The IPA also opposed the government’s decision to retire the Super Clearing House, warning small businesses using the service would be forced to find costly alternatives.


The ATO-managed service is free for small businesses and exempts them from the general interest charge that applies when money is delayed in reaching employees’ accounts.


“If they use an alternative clearing house they are at the mercy of the system if something goes wrong in any of the back-office processing,” Greco said.


“We will be urging the government to seriously think about having a replacement facility and rethink its closure entirely.”


‘Unfair’ 7-day rule



With the ATO's Super Clearing House set to close, the groups also pushed back against the proposed seven-day rule for super contributions to arrive in employees’ accounts.


Employers failing to meet the deadline would be charged interest each day on a compounding basis. The general interest charge is currently 11.36 per cent.


COSBOA called the rule “unfair”, and ICB executive director Matthew Addison said employers who made prompt payments should not be held responsible for processing delays.


“Employers should not be penalised as long as they made the payment on payday,” Addison said.


“If clearing houses, super funds, and employees can’t facilitate the payment within seven days, why is the employer held responsible for actions or lack of action by others?”


The ACCI said that while it supported the idea behind aligning super to wages, it was concerned small businesses lacked the support and resources to comply by the 2026 deadline.


“We are concerned the government has not given enough consideration to the pressures small businesses are facing right now,” chief executive Andrew McKellar said.


The ATO estimates that unpaid super totalled $3.6 billion in 2020–21.


The government said work on payday super’s design would progress through the second half of 2024 ahead of draft legislation being released for consultation.


 


 


 


Christine Chen
20 September 2024 
accountantsdaily.com.au




12th-October-2024

Liability limited by a scheme approved under Professional Standards Legislation