Employers have been warned they have to pay employee superannuation contributions by July 28. (Source: Getty) <\/p>\n
Australian business owners<\/a> have been warned they have until today to make sure their staff have been paid their superannuation contributions<\/a>. These mandatory employer payments, called the superannuation guarantee<\/a> (SG), have to be sent out to all staff every quarter.<\/p>\n July 28 marks the date for when payments for April 1 and June 30 are due. But the Australian Taxation Office (ATO)<\/a> has reminded employers of the major change that could apply to payments<\/a>.<\/p>\n “The SG rate increased from 11.5 per cent to 12 per cent on 1 July,” it said recently.<\/p>\n “For the quarter ending 30 June, apply the 11.5 per cent SG rate for payments made before 1 July.<\/p>\n “Apply the 12 per cent rate for all salary and wages paid for eligible workers on and after 1 July.<\/p>\n “This is even if some or all of the pay period it relates to is before 1 July.”<\/p>\n The increase from 11.5 per cent to 12 per cent was the final legislated SG increase after going up by 0.5 per cent increments since 2021.<\/p>\n Do you have a story? Email stew.perrie@yahooinc.com<\/p>\n The ATO said these SG payments have to be paid out in full by July 28, or serious penalties could apply.<\/p>\n Core Business Accountants said the ATO used to have lenience when it came to late SG payments, but the tax office is now “unforgiving for employers who fall behind”.<\/p>\n The ATO added that the super contributions were only considered “paid” when they reached an employee\u2019s super fund and with the full amount.<\/p>\n Employers who miss the deadline are encouraged to lodge a super guarantee charge (SGC) statement to avoid incurring these penalties.<\/p>\n Penalties for missing this deadline or failing to lodge a SGC include:<\/p>\n Being liable for a penalty equal to or up to 200 per cent<\/a> of the unpaid amount<\/p>\n Being hit with a general interest charge (GIC) and administration fees<\/p>\n The ATO could issue a director penalty notice, which allows the tax office to collect the penalty by other means, like withholding a tax refund<\/p>\n The penalty can be reduced if the outstanding amount is paid, or if the company goes into voluntary administration or liquidation.<\/p>\n At the moment, these SG payments have to be sent out every three months.<\/p>\n However, from July 1 next year, it will be every time a worker receives their pay.<\/p>\n Payday super was first announced back in 2023 and it’s meant to crack down on unpaid super.<\/p>\n Story Continues <\/p>\n The ATO estimated that $5.2 billion <\/a>failed to be transferred properly to workers in 2021-22.<\/p>\n Government modelling found a 25-year-old whose super was switched from quarterly to fortnightly payments could be $6,000 better off at retirement.<\/p>\n While it’s set to be a big win for workers, some employers are getting worried about the upcoming change.<\/p>\n Employment Hero, who operates payroll for more than 300,000 businesses, recently found 65 per cent of small and medium businesses felt payday super<\/a> would have a \u201cmoderate\u201d to \u201chuge impact\u201d on the day-to-day running of their businesses.<\/p>\n About a third said they would have to build up larger cash reserves to prepare for the change, while 15 per cent were not aware of the changes at all.<\/p>\n It also found businesses would need an extra $124,000 in working capital on average to meet the new rules.<\/p>\n As part of the payday super change<\/a>, employers will have a seven-calendar-day deadline from the payment of wages to pay employees\u2019 superannuation.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n The ATO can dish out serious penalties if you miss the SG payment deadline. (Source: Getty) \u00b7 The AGE via Getty Images <\/p>\n