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Navigating missed and late super guarantee payments

posted on 26.09.2024

Protecting your business and employees with on-time SG contributions 

In these challenging economic times, we understand that keeping up with all your financial obligations can be tough. However, it is crucial to stay on top of your superannuation guarantee (SG) obligations. Missing or delaying these payments can have significant consequences for both your business and your employees. Here’s a straightforward guide to help you manage missed and late SG payments. 

What happens if you miss a super payment?

If you don’t pay your employees’ SG contributions on time, you must lodge a Superannuation Guarantee Charge (SGC) statement and pay the SGC to the Australian Taxation Office (ATO). The SGC includes:

  • The unpaid SG amounts
  • Interest on the outstanding amounts
  • An administration fee per employee, per quarter 

Steps to take if you miss a payment

  1. Lodge an SGC statement: You need to lodge an SGC statement with the ATO.
  2. Pay the SGC: The SGC is not tax-deductible, unlike regular SG contributions.
  3. Set up a payment plan: If you can’t pay the SGC in full, the ATO offers flexible payment plans.

Avoiding future missed payments

To prevent future missed payments:

  • Regular payments: Consider making SG payments more frequently, such as monthly or fortnightly, rather than quarterly. This can help manage cash flow.
  • Use a clearing house: Ensure you use a compliant clearing house like SuperStream to process your payments.
  • Stay informed: Keep up-to-date with SG rates and payment deadlines. The current SG rate is 11.5%, increasing to 12% by July 2025. 

Impact on your business and employees

Missing SG payments can affect your business’s reputation and employee trust. Employees rely on their super contributions for their future financial security. Ensuring timely payments demonstrates your commitment to their well-being and helps maintain a positive workplace environment.

Help and support 

We understand that managing super obligations can be complex, but you don’t have to do it alone. We are here to help. Our Business Development Team can provide you with the support and information you need to stay compliant and manage your super obligations effectively. Visit our help and support page for more details.

By staying proactive and informed, you can navigate your SG obligations smoothly, ensuring both your business and your employees benefit in the long run. 

Read this employer story - My Super Experience 

 

For more detailed information on managing missed and late SG payments, visit the ATO website:
Missed and late super guarantee payments | Australian Taxation Office (ato.gov.au)
Overdue super guarantee payment | Australian Taxation Office (ato.gov.au)

 

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The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. September 2024. 

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