Superannuation Guarantee – Are you aware of payment deadlines? Are your payments deductible?

You can claim a tax deduction for superannuation payments on behalf of your employees in the financial year that you make payments.

Super contributions are considered paid when the fund receives them, not when you make the payment to the clearing house. Since the introduction of the SuperStream system you may be using a clearing house to process your payments. It can often take several days for the clearing house to make the payment to the fund, so to be safe, making your payments well in advance of the due dates will ensure they reach the fund on time and are therefore deductible.

When do I pay super?

Payment is due by the 28^th of the month following the end of the quarter. If that day falls on a weekend or public holiday, payment is due on the following business day.

I’m late with my payments. What happens now?

If you don’t pay the minimum amount of super guarantee (SG) for your employee into the correct fund by the due date you may have to pay the super guarantee charge (SGC) to the ATO.

This amount is made up of:

• SG shortfall amount (the amount unpaid or underpaid)
• Interest on those amounts
• An administration fee of $20 per employee per quarter

A SGC Statement must be lodged and the amount payable sent to the ATO. The ATO will then transfer the super guarantee shortfall amount and any interest to your employee’s chosen super fund.

Working out the charge and preparing the statement

When a SGC statement is required, there are a number of options available to assist with he self-assessed calculation and lodgement of your SGC.

1. In the business portal you can use the SGC statement and calculator tool
2. In the Business, BAS Agent or Tax Agent portals you can download and lodge a spreadsheet version of the SGC statement. The spreadsheet will not automatically calculate your SG shortfall, but will calculate the nominal interest component up until the date the form is completed. You then attach the completed spreadsheet to a new portal message selecting ‘Superannuation’ and ‘Lodge SGC Statement’ as the topic and subject respectively.

Are late super payments tax deductible?

Missed payments attract the super guarantee charge, interest and administration fees, none of which are tax-deductible. The also means that you will not obtain a tax deduction for the employee superannuation payment.

Is super paid on overtime?

In Australia you must be paid super if you’re a paid employee earning more the $450 per week, but this does not apply to hours worked on overtime. The superannuation guarantee charge of 9.5% is based on an employees ordinary time earnings (including commission, allowances and annual leave).

What is considered part of ordinary time earnings (OTE)?