To ensure you are entitled to your tax deduction for super contributions in 2017, the super payment, whether for yourself or your employees, must be paid (i.e. out of your bank account) prior to 30 June 2017.
If it hasn’t been debited from your bank account by 30 June, there is no tax deduction in this year.
Due to SuperStream processing times, please ensure that the contribution information and payment has been processed by 4pm Tuesday 20 June 2017. The early payment and processing ensures that the funds are applied to the employees super fund before 30 June. Even though you, as an employer will be able to claim a tax deduction as the funds have left you bank account prior to 30 June, the super funds’ only apply the money to the employees’ super accounts on the day the money is received in the funds’ bank accounts.
Be warned! Processing through the SuperStream clearing houses can take up to ten days. Leave it to the last minute and the contribution will be applied to the employees’ super account in the next financial year which can result in excess contributions and the employee paying additional tax.
If you have any questions please call our office on (02) 9548 5155.