As a healthcare practice owner, staying on top of superannuation obligations is not just good business practice – it’s a legal requirement. Late or missed super payments can lead to significant financial penalties, administrative burden, and personal liability for company directors. Understanding your obligations and the consequences of late super payments is critical to maintaining compliance and protecting your healthcare practice.
When are super payments due?
Superannuation must be paid at least quarterly. The due date is 28 days after the end of each quarter. However, it’s important to note that this is not the date you need to pay it by. This is the date that superannuation must be received and cleared in the employee’s fund. Processing times through clearing houses can take between 4–10 business days, so it’s best to process payments by the 16th of the month following each quarter:
- Q1 (Jul–Sep): Pay by 16 October
- Q2 (Oct–Dec): Pay by 16 January
- Q3 (Jan–Mar): Pay by 16 April
- Q4 (Apr–Jun): Pay by 16 July
If you want to claim a tax deduction for the super in the current financial year, Q4 must be paid before 30 June – not 16 July. Your accountant or bookkeeper can advise you on exact cut-off dates to ensure you can claim this deduction.
What are the consequences of late super payments?
Failing to pay super on time triggers a series of automatic consequences under the Superannuation Guarantee (SG) regime.
Superannuation Guarantee Charge (SGC)
If a payment is late – even by one day 0 you must lodge an SGC statement with the ATO and pay the SGC, which includes:
- The SG shortfall, calculated on total salary and wages (not just Ordinary Time Earnings)
- Interest (currently 10% p.a.) from the due date to the date of lodgment
- An administration fee of $20 per employee, per quarter
Unlike regular super payments, SGC is not tax deductible, which adds to the financial cost of non-compliance.
Penalties
In addition to the SGC, employers may face penalties including:
- Part 7 penalty of up to 200% of the SGC amount for failing to lodge or provide information
- General Interest Charge (GIC) on unpaid SGC debts
- Criminal penalties, including up to 12 months’ imprisonment for serious cases of non-compliance
The ATO can also pursue legal enforcement of unpaid SGC debts.
Director Penalty Notices (DPNs)
Company directors are personally liable for unpaid superannuation under the Director Penalty Regime. If your practice fails to meet its super obligations, the ATO can issue a DPN, making directors personally responsible. In some cases, this liability cannot be avoided, even if the company eventually pays the debt.
What to do if you’ve missed a payment?
If a super payment is late, you must:
- Lodge an SGC Statement with the ATO
- Pay the SGC or arrange a payment plan
- Keep accurate records and ensure timely correction of future super payments
The ATO provides a Superannuation Guarantee Charge Calculator to assist employers in working out the exact amount due. If you can’t pay in full immediately, you can apply for a payment plan, however, interest will continue to accrue.
Can you offset late payments?
Yes, in some cases, you may be able to reduce your SGC liability by using either:
- Late Payment Offset: This allows you to offset a late super payment against the SGC for the same quarter. However, the payment must be made before lodging the SGC statement and cannot be reversed later.
- Carry Forward Option: Late payments can also be carried forward and counted as a pre-payment for a future quarter. Note that while this doesn’t remove the requirement to pay the SGC for the missed quarter, it can simplify future contributions.
How the ATO tracks non-compliance
With Single Touch Payroll (STP) reporting now mandatory, the ATO uses data matching to identify superannuation shortfalls in real time. If an employee’s pay is reported through STP but no matching super contribution is received, this can trigger an investigation.
Need help managing your superannuation obligations?
At Amalgam Advisors, we assist healthcare practice owners with all aspects of payroll, bookkeeping, and superannuation compliance. We can ensure your payments are processed on time and in accordance with ATO requirements. If you’ve missed a payment, we can also help prepare and lodge your Super Guarantee Charge Statement and liaise with the ATO on your behalf.
To find out how we can help you manager your superannuation obligations, or any other financial management aspects of your practice, get in touch with our team today.
Please note: Additional fees may apply for SGC statement preparation and ATO correspondence.
