ATO’s crackdown on employers’ super payments – How one day late could cost you!

With single touch payroll and superannuation clearing houses working hand in hand, the ATO refocused on employers, focusing on the payment of their employees’ compulsory superannuation obligations. We have recently noticed an increase in the ATO surveillance around super payments and ATO super guarantee audits are becoming a common occurrence.

Currently, the payment of employee superannuation is due quarterly, 28 days after the end of each quarter. Importantly, the funds must be received by the super fund within the 28-day period. The only exception to this is if you use the ATO’s Small Business Superannuation Clearing House where payments may be considered as ‘paid’ on the date they were received, rather than the date the super fund receives the payment.

Due dates for payment

This is a reminder that the due dates for payment of employee superannuation are as follows:

  • Quarter ended 30 September – due 28 October
  • Quarter ended 31 December – due 28 January
  • Quarter ended 31 March – due 28 April
  • Quarter ended 30 June – 28 July

Please note these are the due dates by which the funds need to be RECEIVED by the super fund in order to be paid on time. We recommend that you action payment at least a week before due date to allow for processing time. If the due date falls on a weekend or public holiday, the super must be received by the fund on or before the next business day.

What happens if you miss a payment?

The ATO can impose harsh interest penalties and administrative charges for failing to pay your super obligations on time.

The calculation for superannuation guarantee charge is as follows:

  • Nominal interest is currently 10% per annum (accrues from the start of the relevant quarter)
  • The ATO administration fee is currently $20.00 per employee per each quarter lodged late.

Many businesses may decide to pay super more regularly, such as on a fortnightly or monthly cycle, to assist with their cashflow.

If you have any queries around your super obligations, please do not hesitate to contact our office on (07) 4688 8200.

All information provided outlined above was current at the time of publishing.