🇦🇺Australia

Superannuation Guarantee Shortfalls

2 verified sources

Definition

Temp staffing involves variable hours across states; manual calc errors lead to underpayments. ATO pursues recovery via SG Charge.

Key Findings

  • Financial Impact: SG Charge: 200% of shortfall + interest (10.5% p.a.); e.g., AUD 1,200 shortfall costs AUD 2,400+
  • Frequency: Per quarter per affected employee
  • Root Cause: Complex SG calc for casual/temps across state payroll tax rules

Why This Matters

The Pitch: Temporary staffing agencies lose AUD 200+ per employee on SG shortfalls. Automated payroll processing prevents charge and interest.

Affected Stakeholders

Finance Directors, Payroll Teams

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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.

Evidence Sources:

Related Business Risks

Payroll Tax Threshold Breaches

4.75-6% tax rate on wages over threshold; e.g., AUD 2M payroll = AUD 50,000+ tax

STP Phase 2 Non-Compliance Fines

AUD 330 per failure-to-lodge penalty (up to AUD 1,565 for repeated); typical 20-40 hours/month manual reconciliation for multi-state compliance

Labour Hire Licensing Penalties

AUD 50,000-AUD 100,000+ per breach; application delays cost 20+ hours prep per state transition

Verstöße gegen australische Lohn- und Sozialabgabenpflichten für temporäre Mitarbeiter

Quantified (logic-based): AUD 50,000–100,000 per year in wage backpay for a 200–300 temp workforce (AUD 1–2/hour underpayment across ~50,000 hours), plus AUD 10,000–50,000 per year in SGC interest, admin fees and Fair Work civil penalties depending on the scale and duration of non-compliance.

Verzögerter Zahlungseingang durch fehlerhafte Lohn- und Leistungsdaten bei Zeitarbeitskräften

Quantified (logic-based): For a temp agency with AUD 10 million annual revenue, approximately AUD 600,000–800,000 in additional working capital tied up (15% of invoices delayed by 15–20 days on top of a 35–40 day DSO), equivalent financing cost of roughly AUD 15,000–40,000 per year at 2.5–5% cost of capital.

Produktivitätsverlust durch manuelle Compliance-Erfassung für Zeitarbeitskräfte

Quantified (logic-based): Approximately 0.5–2 FTE of HR/payroll time (AUD 40,000–160,000 per year at ~AUD 80,000 loaded cost per FTE) consumed by manual compliance tracking and reporting for temporary workers instead of billable or strategic activities.

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