Superannuation Contribution Deadlines—Beware!

Despite the difficult economic situation of recent months, we remind employers of the need to meet their ongoing super guarantee obligations for their employees.  Due dates for employer contributions remain unchanged with the next June quarter contribution due by 28 July 2020.

We also remind employers that superannuation contributions are only considered to be paid for the purpose of claiming a tax deduction once they have been received by the super fund.  If you wish to claim a tax deduction for your contributions in the 2019/20 financial year, payments must be received by employee super funds by 30 June.  To meet this deadline you will need to make the payment well in advance to allow processing time, particularly if there is a clearing house involved.  The ATO Small Business Superannuation Clearing House (SBSHH) recently announced that they must accept payments by 23^rd June to ensure payments reach super funds on time.

Whether meeting the 30 June deadline for tax deductibility or the quarterly due date required for super guarantee contributions, we recommend that employers make their super payments 10 days prior to the relevant deadline.

Superannuation Guarantee and JobKeeper

We also advise that amendments have been released to ensure employers are not subject to additional superannuation guarantee obligations by participating in JobKeeper.

Superannuation Guarantee (Administration) Amendment (JobKeeper Payment) Regulations 2020 has now been registered, setting out that superannuation guarantee payments will only be required to be paid to an employee for the performance of work.

The regulations specify that employers are not required to make contributions for top-up payments to satisfy the wage conditions for JobKeeper payments.  For example, where an employee earns her usual wages of $1,000 per fortnight, and her employer pays an additional $500 per fortnight to meet the wage condition for JobKeeper, the additional payment of $500 is excluded from being salary or wages and is not subject to additional superannuation guarantee obligations.

Early Release of Super due to COVID-19

Clients who are experiencing financial stress as a result of the COVID-19, may be able to access some of their superannuation money early.   Individuals who meet eligibility criteria will be allowed to access up to $10,000 from their superannuation in 2019/20 and a further $10,000 in the 2020/21 financial year.

Funds accessed under the early release measures are tax free and will not affect Centrelink or veteran’s payments.

Applications for the 2019-20 financial year opened on April 20 and close on 30 June 2020.   In relation to the 2020/21 year, applications can be lodged between 1 July 2020 and 24 September 2020. 

Clients can apply online through myGov however we recommend that you contact our office to discuss the eligibility criteria and the suitability of this measure to your circumstances.