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Late payments

Cbus is committed to helping you meet your superannuation payment obligations as an employer.

It is important to make your super contributions on time. Late payments or failure to pay contributions can disadvantage your employees and can attract penalties against you as their employer. Our requirement for monthly contributions helps you avoid tax office penalties. If your SG obligations are not met, the ATO may charge additional penalties, interest and fees which are not tax deductible. You can find further information about your SG obligations on the ATO website.

What you must do if you haven't met your obligations

If you have not met your superannuation obligations you will need to:

  • lodge a Superannuation guarantee charge statement - quarterly (NAT 9599); and
  • pay a penalty known as the Superannuation Guarantee Charge (SGC) to the ATO.

The amount of the SGC is equal to the amount of required contribution, plus interest at 10%p.a. on the amount outstanding plus an administration charge of $20 per employee per quarter. 

It is important to note that the SGC is not a tax deductible business expense, unlike employer contributions that are paid fully and on time to the correct super funds.

What happens if you pay a late contribution?

If you pay a super contribution after the cut-off date, but before the tax office assesses your business for any SGC liability, you may be able to use this late payment as an offset to reduce the amount of SGC. However you must still lodge a SGC statement - quarterly and pay the balance of the SGC.

Other penalties

You can also face other penalties if you don't pay super to your employee's chosen super fund (choice liability), or for failing to give employees a choice of fund form when they commence employment. Paying contributions into the wrong super funds does not discharge your super obligations.

In this case, the employer is liable to pay 25% of the SG shortfall to the ATO, up to a maximum of $500 per notice period.

As well as the above penalties, there are several other penalties and charges that might apply, depending on your circumstances. For example, penalties may apply if you:

  • don't keep proper records;
  • make false or misleading statements; and/or
  • enter into arrangements designed to avoid your super obligations.

More information

For further information about requirements for businesses regarding superannuation obligation, refer to the ATO website at www.ato.gov.au/businesses or you can call the ATO on 13 10 20.