Managing Your Employees Superannuation Contributions


As an Aussie employer, one of the most important obligations that you have to fulfill is paying up your employees’ entitlements. These are usually mandatory and failure to meet your obligations will often result in some liabilities that are enforceable against your non-business assets. One of the most important of these entitlements is the superannuation guarantee. Here are some tips on you can comfortably pay up your employees’ superannuation contributions in time:-

Note down the dates

The superannuation payments to the employees’ superannuation funds must be made on a quarterly basis based on the Australian Taxation Office’s guidelines. These dates are as follows:-

  • 28th October: An employer should make a superannuation payment by this date for the 1 July – 30 September Quarter.
  • 28th January: This date applies for the 1 October – 31 December quarter.
  • 28th April: This date applies for the quarter 1 January – 31 March
  • 28th July: For the 1 April – 30 June quarter

In case the dates listed above fall on a public holiday or a weekend, you can make the superannuation payment to the employees’ super funds on the next business day. However, employers have some flexibility on the frequency with which they make the super payments so it is possible to make the payments weekly, fortnightly or on a quarterly basis depending on your pay runs if it is easier to administer it that way.

Looking for a Payment Extension?

Sometimes, businesses may suffer cash flow issues and they may need a little extension on the date in order to meet their super payment obligations. If you need an extension, you should get in touch with the Australian Taxation Office as soon as possible to request for the extension. The ATO generally provides temporary extensions for employers who make the request due to a pressing need. However, that extension may incur your business some penalty in the form of an interest. An extension for your employees’ superannuation contributions will likely be granted as long as you have shown the intention to pay and have made a partial payment against your obligations.

Save money for your employee super obligations

The best way to smoothly manage your employee superannuation contributions and avoid surprises along the way is to plan ahead. It will help prevent some nasty surprises and financial penalties when you find yourself unable to meet these obligations. The best way to go about this is by setting aside the 9.5% Super Guarantee in a separate account. This is applicable for earnings amounting to over $450 per month. . Segmenting this helps you see the money and perhaps imprint it in your mind that you have some pressing obligations that have to be met. This is as opposed to pooling all the cash in one account and using them for all arising needs which may force you to unwittingly dip into the amounts that you have set aside for your super. When you have cash set aside in a separate account, you can also borrow against it temporarily. The most important thing is to have a clear sense of the amount of superannuation guarantee contributions that will be due on a particular date and then plan for this in advance.

Outsource your employee superannuation guarantee contributions regimen

If managing your employee superannuation contributions is too much work, the best way to go about it is by outsourcing this process to a third party. Any employer will tell you that administering super payments is painful and tedious work. If you are running a small business, one of the options that you could go for is a small business superannuation clearinghouse (SBSCH). This is a simplified superannuation payment service that is administered by the Australian Taxation Office and which allows you to make super payments to your employee nominated super fund accounts through a single transaction. To be eligible for the SBSCH, you must be running a small business defined by ATO as that with less than 19 employees or an annual turnover of less than $10 million.

You can also consult with an accountant Melbourne service to advise you on the most reliable superannuation outsourcing services that will be suited for your business.

Can We Help? Let Us Get in Touch.

Invalid Email
Invalid Number

Our Latest Content

Accountants in Melbourne

Stimulus package

By James Mav | March 24, 2020

In light of the new stimulus package, there are few incentives which may apply to your situation. 1: $550/per fortnight […]

Melbourne Accountants

Maximizing on Your Superannuation Before June 30

By James Mav | March 21, 2019

The June 30 tax filing deadline of is less than three months away and this is the time to start […]

Accountants in Melbourne

Is Your Superannuation Costing You More Than It Should?

By James Mav | March 21, 2019

How well do you trust your super fund? Not all of them are consummate professional outfits and reports have been […]

Speak with our Finance Experts Today