As we have mentioned previously, it is critical for employers to pay superannuation on time. Even a single day late can trigger significant penalties, including administration fees, 10% interest (from the start of the quarter), and loss of tax deductibility. Directors can also become personally liable for unpaid super.
With the rollout of Single Touch Payroll (STP) and improved data sharing between the ATO and superannuation funds, late payments are now much easier for the ATO to detect. We are noticing that ATO reviews and audits for super compliance are becoming more frequent.
It’s also important to note that the reason for a late superannuation payment does not reduce the reporting requirements or penalties imposed by the ATO. Employers must still lodge a Superannuation Guarantee Charge (SGC) statement and pay the additional amounts, even if the delay was outside their control. Common examples include:
- Payments bouncing or being delayed by the bank
- Employees not providing their super fund details in time
- Payroll errors or missed processing deadlines
- Employees going overseas or becoming uncontactable (MIA)
Looking ahead, the upcoming Payday Super reforms (from 1 July 2026) will require super to be paid at the same time as wages. This will further tighten compliance and reduce the lag between wage payments and super contributions.
We strongly recommend prioritising payment of employee superannuation by the due date.
Reviewing your processes to avoid costly errors and ensure your business remains compliant.