Superannuation Guarantee Increase
The Superannuation Guarantee rate changed to 12% on 1st July 2025.
Employers must double check and ensure payroll systems are updated accordingly to remain compliant. Although this is automatic in many of today’s modern bookkeeping software packages, don’t take it as gospel – always check it has updated.
The Superannuation Guarantee is currently scheduled to remain at 12% until (at least) 2028.
Penalties for Late or Unpaid Super
Super currently must be paid by the quarterly due dates - that is 28 days after the end of each quarter.
Pro tip : Pay your super as soon as possible - It’s not enough to pay ‘by the due date.’ Super is only considered paid when it’s received by the employee's fund, not when you hit ‘transfer.’ Payments can take up to 10 business days to land in employee’s funds, longer during peak times. This is critical when planning quarterly cut-offs. If you leave it too late, you may miss the deadline, have to pay admin and interest fees, and even lose your tax deduction.
Importantly, Super Clearing Houses have processing delays. The ATO’s Small Business Super Clearing House (SBSCH) is handy but it’s limited to payrolls of 19 or less employees. Superannuation is considered finalised when the payment and the lodgement instruction is received by the SBSCH, not when distributed to the employees’ funds. While lodging your superannuation via SBSCH may be a good option now, keep in mind that the SBSCH will cease accepting contributions on 1st July 2026, when ‘Pay Day Super’ is expected to be rolled out in full.
If super is paid late - even by one day - an SGC (Super Guarantee Charge) Statement must be lodged with the ATO. Note: The ATO can hold Company Directors personally responsible if super is not paid and no SGC statement has been lodged.
The SGC is then calculated on all wages, not just OTE, increasing the employer’s liability.
Penalties and consequences include:
10% interest, backdated to the quarter due date.
$20 admin fee per employee, per quarter.
Super paid late is not a tax-deductible business expense, even when it is eventually paid.
There is a risk of further ATO compliance action and penalties for failure to lodge.
Upcoming Change – Payday Super (Expected 1 July 2026)
The Government has announced that super will need to be paid at the same time as wages (“payday super”) from 1 July 2026.
This is not yet legislated but is expected to proceed.
Employers will need to ensure payroll systems and cashflow can support more frequent payments.
Pro Tip: Since the start of Single Touch Payroll, many of the popular bookkeeping software programs automate payroll and super payments – but please ensure that the correct employee information and payroll categories are input to get the right calculations. Remember the old saying, ‘garbage in garbage out!’
Bookkeeping Costs for SGC Lodgement
Preparing and lodging an SGC statement requires manual reconciliation and ATO-compliant calculations. The calculations are prepared per quarter/per employee and cannot be combined into one lodgement.
A professional bookkeeping cost can be anywhere from $200 + GST for minimal employees, per quarter for each late super instance. If your late super is over many quarters and involves many employees, the cost to the business can be substantial.
Timely super payments save on both penalties and additional bookkeeping costs.
Here’s a valuable link to the ATO for more information on Superannuation non-compliance:
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/missed-and-late-super-guarantee-payments
As you can see – there’s plenty to consider around paying Superannuation on time. And this is just the tip of iceberg! Superannuation is one of those areas in business that seems simple - until it isn’t. This blog is focussed on the late payment of Superannuation contributions, but there are many other areas of superannuation to consider.
The truth is, there are some surprising rules and lesser-known traps that can catch even the most diligent employers off guard – but we won’t bombard you with that now!
For now, remember that even if your Superannuation is fully automated in your bookkeeping software, you still have to be diligent and ensure payments are made in plenty of time.
If you have any doubt, it’s worth getting a professional to run an expert eye over your payroll. At WestBAS, we want to ensure your super is anxiety free – call us if you need support.