Superannuation Guarantee Shortfall Penalties
Definition
Performing arts organizations, including sole traders hiring assistants or performers, must pay super on labour even for contractors with ABNs if control test applies. Failure to pay by quarterly deadlines triggers mandatory ATO shortfall statements with fees and interest; contributions become non-deductible.
Key Findings
- Financial Impact: AUD 20 administration fee per employee/contractor + interest at 10% p.a. on shortfall (e.g., AUD 120 interest on AUD 1,200 unpaid super); super payments non-tax-deductible if late
- Frequency: Per quarterly deadline missed, per affected worker
- Root Cause: Manual tracking of contractor super obligations, missed deadlines, failure to obtain super choice forms
Why This Matters
The Pitch: Performing Arts employers in Australia 🇦🇺 face AUD 20+ admin fees and 10% p.a. interest per late super payment. Automation of union pension contributions ensures timely STP reporting and eliminates penalty risks.
Affected Stakeholders
Arts employers, Sole traders hiring assistants, Performing arts producers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Non-Deductible Super Contributions
ATO Reclassification of Contractors
SAG-AFTRA Strike Production Delays
Increased Pension Contributions
Fair Work Award Non-Compliance Risks
Delayed Donor Pledge Payments
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