We are seeing increased action from the ATO regarding late and unpaid Superannuation Guarantee Contributions. In one instance, a late payment resulted in a penalty which incurred a 70% additional cost to the business.

The penalty for a late payment includes interest and administration fees. On top of this, the total payment and penalty charges is non-tax deductible. Directors can also be personally liable.

The introduction of Single Touch Payroll reporting means the ATO is strictly monitoring and enforcing superannuation compliance.

We strongly advise that you make note of the Superannuation payment deadlines and plan to meet these. It's also advisable to check the processing time required by your Superannuation clearing house to ensure their time is factored in. Often the payment due date is not considered to be met when it reaches your clearing house, but when the payment reaches the employee Superannuation funds.

Generally, the quarterly due dates for Superannuation contributions are 28 days after the end of each quarter.

When a due date falls on a weekend or public holiday, you can make the payment on the next working day. For further information please feel free to contact us directly or visit the ATO website.