Company Directors automatically liable – legislative changes to SGC regime before parliament.
The government recently introduced tax legislation which is designed to protect workers superannuation and prevent the establishment of ‘phoenix companies’ which are deliberately designed to defraud workers of their entitlements.
Importantly directors will be personally liable for their company’s failure to pay Super Guarantee Contributions (SGC)
The ATO will be able to make an estimate of unpaid SGC where a company fails to meet its reporting obligations.
What is interesting is that the ATO will be able to commence recovery procedures and pursue company directors if a company fails to comply with its reporting obligations for a period of more than 3 months and its PAYG or SGC liability remains unpaid.
Now more than ever company directors need to ensure that they pay both their SGC and PAYG on time to avoid fulling fowl of the new rules.