Employer Super Guarantee Compliance Update
Each year, the ATO releases a report outlining the latest annual statistics on employer super guarantee (SG) compliance and obligations. The 2022–23 report provides useful insight into how employers are meeting their SG responsibilities and where the ATO is increasing its focus.
Overall SG Compliance Levels
According to the 2022–23 report, 94% of employers met their SG obligations without ATO intervention. This figure is unchanged from 2021–22, despite a significant increase in employers and employees reporting through Single Touch Payroll (STP).
In 2022–23:
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Around 915,000 employers reported through STP for approximately 14.3 million employees
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In comparison, 819,000 employers reported for around 13.6 million employees in 2021–22
This reflects broader adoption of STP reporting across the economy.
The Super Guarantee Gap
The super guarantee gap measures the difference between the SG paid and what should have been paid if all employers met their obligations in full.
For 2022–23:
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The SG gap increased slightly to 5.1%, or $3.6 billion
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This compares to 4.9%, or $3.4 billion, in 2021–22
The increase suggests a higher level of unpaid SG that may still be recoverable by the ATO.
Changes in Compliance Activity
There were several notable shifts in compliance activity during 2022–23.
Employee Notifications and ATO-Initiated Cases
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Employee notification cases completed fell from around 77% in 2021–22 to 54% in 2022–23
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ATO-initiated unpaid super cases dropped from 2,100 to 1,400 over the same period
The ATO notes that many employee notifications did not require further action, often because:
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The complaint was withdrawn
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The ATO had already raised an assessment
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The employer had lodged a super guarantee charge statement
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Duplicate notifications were received
Voluntary Disclosures Increased
In contrast, voluntary disclosures by employers rose sharply:
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30,800 disclosures in 2021–22
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56,000 disclosures in 2022–23
This suggests more employers are identifying and correcting SG issues before formal ATO compliance action begins.
Looking Ahead: Payday Super and Increased Recovery Focus
As part of the government’s announced move to “payday super”, where SG contributions are paid at the same time as salary and wages, the ATO is expected to significantly lift its SG recovery targets.
Payday super is scheduled to commence from the 2026–27 financial year. The lead time allows the ATO to:
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Upgrade data and compliance systems
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Review debt recovery processes and policies
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Improve outcomes for employees receiving SG entitlements
New SG Recovery Measures
Two new SG compliance metrics have been introduced.
SG Distributed as a Proportion of SG Raised
This measures the proportion of SG charge liabilities raised in a financial year that are ultimately collected and distributed to employees or super funds. Results will be reported two years after the end of each financial year to allow for delayed collections.
SG Raised and Distributed Within 12 Months
This measures the value of SG charge liabilities that are raised, collected and distributed within 12 months of being identified.
What This Means for Employers
All indicators point to a growing and sustained focus by the ATO on SG compliance, both now and into the future. Employers should ensure they stay on top of SG obligations to avoid penalties, including the super guarantee charge and potential Part 7 penalties.
If an employer identifies unpaid SG, the ATO encourages prompt voluntary disclosure and payment. Where required, the ATO has indicated it is open to considering reasonable payment arrangements for outstanding SG debts.
If you have questions about your SG obligations or believe there may be an issue with past payments, speaking with an accountant early can help minimise penalties and compliance risks.
Speak to one of our accountants if you have any questions about the changes in tax for 2023.
