Superannuation for Employers Update

The world of superannuation is constantly changing, especially for employers. Here is an update on some key aspects for employers now and moving forward over the next few years.

Late Superannuation

Currently, if you don’t pay an employees’ superannuation to the right super fund on or before the due date you must lodge a super guarantee charge (SGC) statement and pay the super guarantee charge.

The due date for superannuation to be paid into the employee’s fund is by the 28^th of the month following the end of the quarter.

However, this is the date the monies must be received by the super fund, not the day you pay the money to a “clearing house” (as some clearing houses can take up 7 business days to clear). Processing times vary for all clearing houses, so we recommend paying to your clearing house by the 18^th instead of the 28^th.

With the data reported through single touch payroll the ATO can detect superannuation paid late and are increasingly following up employers to lodge SGC statements for late superannuation.

We recommend lodging SGC statements as soon as possible as interest is charged on late superannuation is charged until the SGC statement is lodged, NOT when the superannuation is paid. Late superannuation and all associated charges also aren’t eligible for tax deductions, so the costs to business can be severe.

 Pay Day Superannuation

The government announced more detail on the upcoming pay day superannuation in September 2024. Superannuation will be due to be paid 7 days after pay day from 1 July 2026. The ATO are proposing changes to the above SGC charges and their clearing house as part of this measure. We expect more announcements and more detail on this will be released as we get closer to implementation.

Super on Maternity Leave

In March 2024 the government announced that superannuation will be now payable on government funded parental leave pay for babies born or adopted on or after 1 July 2025. This will be administered by the government (not employers) and paid annually with payments beginning in July 2026.

If you require any further information on these topics, please don’t hesitate to contact the team at HQB Accountants.

– Tim Arnold

Posted 06.12.2024

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.