The superannuation guarantee scheme is administered on a self assessment basis; what that means is that in the event the employer is even one day late with employee (and some contractor) superannuation contribution payments, the contribution becomes non deductible for tax purposes and the employer is required to lodge a superannuation shortfall statement as well as make payment of the superannuation guarantee charge consisting of:

  • Superannuation shortfall amount i.e. amount either late or not paid
  • Interest
  • Administration fee

The superannuation shortfall statement and payment is required within one month of the contribution payment cut off, hence, two months after quarter end.
If the employee superannuation contributions are paid after the due date the employer has two options for treatment of the late payment:

LATE PAYMENT OFFSET OPTION – Employer may elect the late payment be used to offset the SG charge liability (non deductible) however the superannuation guarantee charge shortfall statement is still required.

PREPAYMENT OPTIONEmployer may elect the late payment to be an advance payment for the next quarter (deductible, but the still applicable superannuation guarantee charge (for the previous quarter) remains non deductible and a shortfall statement is required).

Consequences for late payment, even one day late, must be avoided!