A cornerstone of the Government’s superannuation strategy, is the statutory superannuation guarantee contribution: this is the amount, prescribed by relevant law, required to be contributed by employers, on behalf of employees, to eligible superannuation funds.
As an Employer you are aware that you must ensure that your Superannuation Guarantee Contributions and Salary Sacrifice Contributions for the June quarter are made before the 28 July. However, did you know that if you want to claim a deduction in the financial year to which the amount of the relevant superannuation contributions relate, they must be received by the respective superannuation trustees before the relevant 30 June?
Employers who are directors of companies on behalf of whom superannuation guarantee contributions are due to be paid must take particular care to ensure that remittances of the various contributions are made in a timely fashion: the penalty for late- or non-remittance is two-fold for you –
- Firstly you become personally liable for the amount if the company is unable to make the payment; and
- The Superannuation Guarantee regulations provide for quite significant financial penalties for late payment.
Superannuation is a significant wealth pool in Australia – and increasingly becoming the primary asset for most of us engaged in the workforce, overtaking the home property in many cases as ‘the biggest asset’ held. Over the years, considerable attention has been paid to the area by governments and regulators: the higher the asset pool becomes, the more likely that these agencies will increase resources to monitor superannuation and compliance with the regularly-changing regulations will become more important to employers (as well as to trustees of superannuation funds).
Related article(s) within our website Library: Overview of the superannuation guarantee scheme.
Continuum Financial Planners Pty Ltd can assist employers with their superannuation needs, particularly as they relate to meeting the statutory superannuation guarantee contribution requirements; and whether at the personal or employee group default scheme level – ‘we listen, we understand; and we have solutions’ to the issues you may be concerned about in this area: call 07-34213456, or complete the Contact Us page information to arrange an appointment.
(This article was originally posted to our website in May 2008: it has been updated and/ or refreshed occasionally, most recently in January 2020.)
