The ATO has identified business debt collection, including superannuation guarantee (SG), as a key priority for the 2024–25 financial year. According to its Corporate Plan, the ATO will intensify its focus on SG, pay as you go withholding, and goods and services tax. This is a crucial reminder for businesses to ensure they are meeting their obligations.

Superannuation Guarantee Compliance

The ATO’s latest statistics reveal that while 94% of employers meet their SG obligations without ATO intervention, over $1 billion in SG charge liabilities were raised in the 2022–23 financial year. This indicates a significant amount of unpaid super that could have been avoided with timely contributions.

To avoid incurring extra liabilities, ensure that SG contributions for your employees and eligible contractors are paid on time and to the correct fund. The quarterly due dates for SG contributions are:

• 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

Important Points to Remember:

• Some contracts and awards may require more frequent contributions than the quarterly schedule.
• Contributions made through a commercial clearing house are considered paid when received by the employee’s fund, not by the clearing house itself.
• For those using the ATO’s Small Business Superannuation Clearing House, contributions are deemed paid when received by that clearing house.
• From 1 July 2026, SG must be paid at the same time as salary and wages, commonly known as “payday super.”

What If Your Business Misses an SG Payment?

Acting quickly is crucial to accessing ATO support and minimizing penalties. If you miss a payment, you must lodge an SG charge statement with the ATO within one month of the missed quarterly due date. Timely lodgement is vital to avoid a “part 7 penalty,” which can be up to 200% of your SG charge liabilities. Additionally, timely lodgement allows you to request a payment plan to settle your liabilities in instalments.

If you need to request an extension for the lodgement date, do so before the due date. Be aware that the SG charge, which is more than the missed contributions and is not tax-deductible, includes:

• The amount of missed contributions (calculated on salary and wages, including overtime, not just ordinary time earnings).
• Interest of 10% per annum, accruing from the start of the relevant quarter.
• An administration fee of $20 per employee, per quarter.

This charge is paid to the ATO, not the employee’s fund. General interest charges will accrue on any outstanding SG charge, and the ATO may issue a director penalty notice if it remains unpaid.

We’re Here to Help

Mistakes can happen, but addressing issues early can lead to better outcomes for your business. Contact our office for expert assistance with your SG obligations and to ensure compliance.