The Australian Taxation Office (ATO) has emphasized its commitment to collecting business debts, particularly regarding superannuation guarantee (SG), pay as you go (PAYG) withholding, and GST. This serves as a crucial reminder for businesses to stay compliant with their obligations.
Current Landscape
Recent ATO statistics reveal that while 94% of employers are fulfilling their SG obligations without intervention, over $1 billion in SG charge liabilities were raised in the 2022–2023 financial year. This highlights the financial consequences that can arise from late or missed contributions.
Timely SG Contributions
To avoid unnecessary liabilities, businesses must ensure that SG contributions for employees and eligible contractors are paid on time and to the correct superannuation funds. Note the quarterly due dates for SG contributions:
- Q1 (1 July – 30 September): 28 October
- Q2 (1 October – 31 December): 28 January
- Q3 (1 January – 31 March): 28 April
- Q4 (1 April – 30 June): 28 July
Be aware that some contracts and awards may mandate more frequent contributions than the standard quarterly schedule.
Understanding Payment Mechanics
If you use a commercial “clearing house” for contributions, payments are considered made when received by the employee’s super fund, not when sent to the clearing house. In contrast, contributions via the ATO’s Small Business Superannuation Clearing House are deemed “paid” when received by that clearing house.
Starting July 1, 2026, employers will be required to pay SG at the same time as salaries—known as “payday super.”
What to Do if You Miss a Payment
If you miss an SG payment, taking prompt action is essential to minimize penalties and access ATO support services. Here’s what to do:
- Lodge an SG Charge Statement: Submit this to the ATO within one month of the missed due date. Timely lodging prevents additional penalties, which can be as high as 200% of your SG charge liabilities.
- Payment Plan Options: If you lodge on time, you may qualify for a payment plan to settle your liabilities in installments.
- Extension Requests: You can request an extension for lodging your SG charge statement, but this must be done before the due date.
- Understand the SG Charge: The charge includes:
- The amount of missed contributions calculated on total salary (including overtime).
- A 10% annual interest rate from the start of the relevant quarter.
- An administration fee of $20 per employee, per quarter. This charge is payable to the ATO and is non-deductible.
Consequences of Non-Compliance
Failure to comply can lead to general interest charges on any outstanding SG amounts, and the ATO may issue a director penalty notice if debts remain unpaid.
Moving Forward
While mistakes can happen, addressing issues early can significantly improve outcomes for your business. For expert assistance in managing your SG obligations and ensuring compliance, don’t hesitate to contact our office.
Staying informed and proactive is key to navigating the complexities of superannuation responsibilities effectively.
—————BOOK YOUR EXCLUSIVE 15 MINUTE ZOOM CONSULTATION————-
We offer a 15-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection. To Book an Appointment simply click here and pick a time and date.
BOOK YOUR ZOOM APPOINTMENT HERE
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
Recent Comments