Superannuation guarantee, the deadline nobody can afford to miss

Of every deadline in a small business, this is the one we are least relaxed about, and for good reason.

Late super is not just late

Pay super after the quarterly cut off and it stops being an ordinary deductible expense. Instead you become liable for the superannuation guarantee charge, which is made up of the shortfall, an interest component and an administration fee per employee, and the whole thing is not tax deductible. A modest amount paid a few days late can cost meaningfully more than it would have.

Received, not sent

The obligation is met when the fund receives the money, not when you press pay. Clearing houses take time. A payment made on the deadline can easily arrive after it. We work backwards from the cut off, not up to it, and that habit alone has saved clients real money.

Choice of fund and stapling

When a new employee starts, they choose their fund. If they do not, you generally have to ask the ATO whether they have an existing stapled fund and pay into that, rather than defaulting them into yours. Getting this wrong is a common and entirely avoidable error.

The habit that fixes it

Treat super like the GST: it is not your money, so it should not sit in the account that feels like your money. Businesses that move super out weekly or fortnightly into a separate account never have a bad quarter. Businesses that pay it out of whatever is left at the end of the quarter eventually have a very bad one.

If you are already behind

Unpaid super does not quietly go away, and with Single Touch Payroll the ATO can see it. There are established processes for catching up, and coming forward is treated better than being found. As registered BAS agents we can help you work out the position and approach them about it.

General information only. Rates, thresholds and deadlines change, so check the current position with us before relying on it.