There are a whole bunch of super guarantee obligations. There's a lot of information, and it's easy to make mistakes. So, it's best to take this seriously. If you don't pay super when it is due, you will be charged a super guarantee charge - which is the penalty for paying late or not at all.

The super guarantee charge is calculated as $20 per employee, plus interest charges from the date of the start of the quarter that you have short-paid - or missed.  This means if you are late paying superannuation (eg paying on 1st May when it was due on 28th April), you are required to submit the forms and pay the additional penalties, including interest that starts on 1st Jan (even though it was Jan - March super that you paid late).  It's not worth paying late, but if you do pay late, submit your forms as soon as possible to minimise the amount of interest you pay.

Employees can choose the fund their super goes into, but you must pay contributions to a complying fund or retirement savings account (RSA).

You need to give your employees a choice of funds if they ask for one. You also need to provide them with information about how they can choose their own fund when they become entitled to superannuation guarantee contributions from you.

Superannuation is calculated based on Ordinary Times Earnings.

If you have employees aged 70 years and over, the minimum amount of contributions that need to be paid for these employees each quarter is equal to 10% of the gross wages paid less any after-tax contributions made by the employee.  This will increase to 10.5% of gross wages from 1 July 2022.

From 1 July 2022, the minimum pay threshold is reduced to $0, and super will be payable on all wages.

The due date for super guarantee payments to reach the superannuation fund is the 28th day after the end of the quarter.  You will want to pay it with at least 10 days to spare so that you know the super fund will receive the money on time, especially when using a clearing house to pay.

Quarter Due dates

1 January to 31 March - due 28 April

1 April to 30 June - due 28 July

1 July to 30 September - due 28 October

1 October to 31 December  - due 28 January

Don't wait until the due date to pay it from your account, as this will be too late (the fund won't receive it on time). 

For best practice superannuation payments, use a clearinghouse supplied by your payroll software provider.  This will link through the payment to your employee superannuation details, and enable you to pay from your linked bank account with the click of only a couple of buttons. 

We also recommend separating your bank account for superannuation from your regular banking.  This is because it is a director's obligation to pay super on time, and directors are liable if the business does not pay.  If you keep the funds separate from other business funds, you know that you will always have the money there to pay it.

If you require help calculating your super guarantee charges, please reach out to our office on 08 91859400 to discuss with one of our friendly accountants.