New ATO SG Law – Salary Sacrificing Super

The ATO Explains the New SG Law with Salary Sacrificing Super

From 1 January 2020, salary sacrificed super contributions cannot be used to reduce your super guarantee obligations, regardless of the amount your employee elects to salary sacrifice. This means for the purposes of super guarantee (SG), the salary sacrificed amount will not count towards your super guarantee obligations.

In addition, the amount of super you are required to pay, to avoid the super guarantee charge will be 9.5% of the employee’s ordinary time earnings (OTE) base. The employee’s OTE base is the sum of the employee’s OTE and any sacrificed OTE amounts.

BUSINESS ACTIVITY – Quarterly DUE DATESDue date
1. July, August and September28 October
2. October, November and December28 February
3. January, February and March28 April
4. April, May and June28 July

A later lodgment and payment due date does not apply for quarter 2 because the due date already includes a one month extension.

Super guarantee

Super guarantee contributions to be made to the super fund for every quarter.

Quarter 1 (July–September) – due 28 October

If you do not pay minimum super contributions for quarter 1 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 November.

Quarter 2 (October–December) – due 28 January

If you do not pay minimum super contributions for quarter 2 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 February.

Quarter 3 (January–March) – due 28 April

If you do not pay minimum super contributions for quarter 3 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 May.

Quarter 4 (April–June) – due 28 July

If you do not pay minimum super contributions for quarter 4 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 August.

Single Touch Payroll Penalties

Penalties

• $210 for a late STP lodgment and then for every 28 days it isn’t lodged.

• Large employers these penalties can apply NOW.

• Small employers (<20 employees) no penalties until after 30 June 2020, unless the ATO has issued you with a demand.

• Late payment penalties – same as always

• Late Super penalties – same as always