ATO: Paying Super Guarantee Late
“Hi, I’m Rebecca, director for Superannuation and Employer Obligations at the ATO. We understand that as employers you play a vital role in Australia’s tax and super system, and paying super is a very important responsibility. It’s important that you make super contributions for your eligible employees and contractors on time, in full and to the correct fund. The minimum amount that you need to pay is called the super guarantee or SG for short.
SG payments must be made at least four times a year and must be received by your employee’s fund on or before the quarterly due dates. These dates are the 28th of January, April, July and October each year. It’s important to note that some super funds, awards, and contracts may also require you to pay super more regularly. It’s important to make these payments on time and to the right fund, otherwise you will end up paying the super guarantee charge, also known as SGC, and you may face additional penalties.
SGC is more than the super you would have otherwise paid to the employee’s fund. It’s calculated on salary and wages instead of ordinary time earnings. It may include things like overtime and allowances, as well as interest and other fees. SGC is not tax deductible, so it’s best you pay on time.
If you do find yourself in this situation because you have paid late or haven’t paid the correct amount, then you’re required to lodge an SGC statement. You must lodge an SGC statement if your SG contributions were late, even if you have already paid in full to the fund. The SGC statement is due within one month of the quarterly payment due date that you missed.
We talk more about the SGC statement in our ‘What is a super guarantee charge statement’ video, so I encourage you to watch for more information. You may be able to claim a late payment offset if you meet certain conditions. This may allow you to offset the amount of super contributions that you have already paid to reduce the SGC you owe.
If you miss your SGC statement due dates and don’t let us know, we may raise an additional penalty known as a ‘Part 7 penalty’, which can be up to 200% of the SGC amount payable. We know mistakes can happen and we’re here to support you to get it right. Remember, you must lodge an SGC statement if you pay late, even if you can’t afford to pay all of the SGC owed. We can help you to set up a payment arrangement. More information on paying super on time and the late payment offset is available by visiting ato.gov.au/latepayments.”
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