Small business owners from Taree to Wauchope could be hit with big penalties over superannuation they may have already paid, and their federal MP wants to hear from anyone caught in the net.
“Small business owners across Lyne work hard to pay their employees, meet their obligations and keep their doors open,” said Federal Member for Lyne Alison Penfold.
“They should not have to spend thousands of dollars and countless hours trying to disprove an allegation based on information the ATO has not adequately explained.”
Ms Penfold has called on the Albanese Labor Government to make sure small businesses are not unfairly penalised over historical super discrepancies that may be caused by errors in government or superannuation fund data.
Her call follows reports the Australian Taxation Office (ATO) is issuing notices to businesses flagging possible unpaid or late super contributions dating back to 2021. The notices warn of significant penalties and interest.
Ms Penfold said every worker was entitled to their super, but employers were equally entitled to fair treatment and accurate information from the ATO.
“If there is a genuine superannuation shortfall, it needs to be addressed,” she said.
“But a difference between payroll records and superannuation fund reporting does not necessarily mean an employer has failed to pay.”
The Institute of Certified Bookkeepers has raised concerns about historical ATO notices identifying apparent discrepancies across multiple quarters. It has also pointed to how hard it is for employers to get the information they need to reconcile payments.
Ms Penfold said those concerns came as the independent Tax Ombudsman reported a 74 per cent jump in complaints in the six months to September 2026, compared with the same period last year.
“That should be a warning to the Government about the pressures taxpayers and small businesses are experiencing,” Ms Penfold said.
“Regional businesses are already dealing with rising operating costs, workforce pressures and additional compliance requirements.”
“They have also had to adjust to new Payday Super obligations introduced in July.”
“The last thing they need is an unexplained demand concerning superannuation payments they may have made years ago.”
She wants the Treasurer to make sure businesses are given the specific employee, fund, and payment information behind any allegation before penalties are pursued, along with a fair chance to fix errors.
“The lessons from the Robodebt Royal Commission were clear,” Ms Penfold said.
“Government must be accountable for the accuracy of its systems, and people must have a meaningful opportunity to challenge decisions affecting them.”
“Technology should help the ATO identify genuine non-compliance, not make it harder for honest businesses to establish that they have done the right thing.”
Ms Penfold is asking small business owners across Lyne who believe they have been unfairly caught up in the ATO’s automated compliance process to contact her office.
“I want to hear directly from local businesses that have received these notices, particularly those who have already paid their employees’ superannuation but are now being asked to explain alleged shortfalls or face the prospect of significant penalties,” she said.
“If you’ve done the right thing and are now being caught up in an automated process that doesn’t reflect the facts, please get in touch with my office.”
“I want to understand the extent of the problem here in Lyne, help affected businesses get answers and take their experiences directly to the Treasurer and the ATO.”
Lyne takes in Taree, Forster, Gloucester, and Wauchope.
“Small businesses should not be left fighting a government computer system to prove they have met their obligations,” Ms Penfold said.
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