Watson & Watt

What's due in May? Pretty much everything

❌ Did you pay December Qtr super by 28 Jan? If you didn't stop scrolling & start reading! ❌

Superannuation is not just another bill! It’s your employees’ money, and failing to pay it on time can have serious consequences for you and the business.

Many business owners don’t realise that late super payments can’t be simply “caught up” later.

Once a payment is late—even by a day—it becomes a Superannuation Guarantee Charge (SGC) obligation, and that comes with additional penalties and deadlines.

🔹 Here’s what happens when super is paid late:

1️⃣ You lose the tax deduction – Superannuation contributions are usually tax-deductible, but late payments don’t qualify, meaning you could be paying more tax than necessary.

2️⃣ You must lodge an SGC statement by 28 days after the super due date – If you miss a due date, you’re required to submit an SGC statement to the ATO, which includes the unpaid super, interest, and administration fees.

3️⃣ You’ll pay interest and penalties – The ATO imposes 10% interest per year on late payments, plus administration fees. If you fail to report and pay, additional penalties of up to 200% can apply.

4️⃣ Directors are held personally liable – If super is unpaid the directors are personally liable under the Director Penalty (DPN) Regime.

5️⃣ Your business reputation takes a hit – Employees notice when their super isn’t paid on time. It affects trust, morale, and even your ability to retain staff.

💡 How to stay compliant and avoid penalties:

✅ Pay super on time – Super is due quarterly, but with payday super coming in from 1 July 2026, businesses will need to start thinking about processing super contributions with every payroll cycle.

Read more on what this means for your business here:
👉 https://lnkd.in/gWaW3cnE

✅ Use a Super Clearing House – This ensures payments and data are reported correctly to the ATO and the super funds. It's also compulsory.

✅ Create a system - Put a repeating reminder in your phone/calendar, ask ChatGPT to remind you, teach your dog to bark when it's time. It doesn't have to be fancy, it just needs to get you to pay it.

✅ Seek professional help – If you’re struggling to keep up with super obligations, work with an accountant to get back on track before the ATO steps in.

Super is the canary in the coal mine. If you can't pay super each pay run, you have a cash flow problem. Sticking your head in the sand, is not a solution to that problem. You need to change your business. Quickly.

Superannuation is one of the most common compliance issues that lands businesses in hot water. But with the right systems in place, it’s completely avoidable.

If you’re worried about super, get in touch

🔗 Read more: https://lnkd.in/g6pHN26x

Can't remember when stuff is due? We've got you.

Somethings like overtime or bonuses don't required superannuation to be paid because they aren’t ordinary times earnings.
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