Much has been made of the ATO’s new-found zealous approach, with a record-breaking number of winding-up applications in May.

An ATO Performance Audit, Promoting Compliance with  Superannuation Guarantee Obligations, which was tabled in Parliament this week, identifies insolvency as one of two main factors affecting Superannuation Guarantee Charge collection.

Of the 54% of cases finalised by the ATO as ‘no further action’ in 2010-11 and 2013-14, about one in three were finalised due to employer insolvency, which meant that although employers were non‐compliant and a Superannuation Guarantee amount was due, it was likely to remain unpaid.

The report highlights that in 2010-11 and 2013-14, the amount of debt written off due to employer insolvency grew from $99 million to $233 million, an increase of 133%. “Insolvencies and delayed compliance interventions are important factors affecting the ATO’s capacity to collect and successfully transfer unpaid superannuation guarantee,” the report said.

The report evidences that the ATO’s more aggressive approach in pursuing winding-up applications is at least in part attributable to a concern with minimising the losses suffered  by employees as a consequence of their employer’s insolvency. With a stricter approach to compliance, the message from the ATO is clear – get a payment plan in place or risk being wound up.