Employees face significant consequences if their super funds do not have their TFNs. For example, their super may be taxed an additional 31.5% and their super fund will not be able to accept any personal contributions. This means eligible employees could miss out on receiving a government super co-contribution payment.
From 1st July 2007 the Australian Taxation Office has been checking that employers pass on employee TFNs to the relevant super fund. It is an offence not to provide an employee's TFN to their super fund within the required timeframe.
For individuals, the maximum penalty that can be imposed is about $1,100. However, the maximum penalty payable by a body corporate is currently $5,500.
The maximum penalty may apply for each offence, so if you fail to report five TFNs to the relevant super funds, five penalties can apply.
To iron out some of these problems you can gain additional help by registering and using the Superconnect Clearing House.