We all know that sinking feeling when we have forgotten something important.
If you have just realised that you have missed a superannuation payment deadline, don’t panic, we can help.
First, and most importantly please pay what is due as soon as possible.
Secondly, you will have to notify the Tax Office via a superannuation guarantee charge (SGC) statement.
The consequences of missing superannuation payments can include:
- Paying 9.5% on all wages, not just ordinary earnings.
- Additional costs such as interest and administration charges paid directly to the Tax Office.
- And importantly loss of a tax deduction for the superannuation paid. To be eligible to claim a deduction the payment must be made on time. If a payment is made after a due date, be it a day late or much longer, a tax deduction is denied.
If you do have to pay the SGC, there may be some relief depending on your situation. These can include using the late payment offset to reduce the amount of SGC payable or carrying the late payment forward as a prepayment of a future superannuation contribution.
To avoid SGC and its potentially costly consequences please make sure that you have paid your superannuation by the below dates.
|Quarter||Superannuation contribution due date|
|1 July – 30 September||28 October|
|1 October – 31 December||28 January|
|1 January – 31 March||28 April|
|1 April – 30 June||28 July|
If you have any questions or believe you may have paid your employee’s superannuation late please do not hesitate to contact us.
This article appeared in our September 2020 newsletter. The author is Renee Larsen.