Super Duper and Yay
We all know that superannuation is due on the 28th day after each financial quarter. So you’ll pay the October – December quarter by 28th January. But did you know that the payments must clear to the super fund by that 28th day or they are NO LONGER DEDUCTIBLE FOR INCOME TAX PURPOSES. Ouch! It is the only business expense that has such a heavily penalised timeframe and when I spoke (whinged) to the ATO about it recently they admitted they had no plans to change that. I strongly recommend contributing and paying your super no later than the 26th day after the quarter. In fact, some clearing houses take no responsibility for passing the money on to the appropriate fund in time if you have paid after the 14th day after the quarter.
The good news? Yes, there is good news… the guaranteed superannuation rate is stable at 9.5% of gross wages and there are no plans to increase that until 2021. On 1 July 2021 and then each year thereafter it will increase by 0.5% until it reaches 12%.
So, you’ve heard of SuperStream? Larger employers had to be compliant by 1 July 2015. Every other employer needs to be compliant with SuperStream by 1 July 2016. That means that employers can no longer pay their superannuation obligations by sending off cheques to this fund and that fund. You will need to use a super clearing house or a program that electronically lodges all of your employee’s super contributions at once. If you are already using a super clearing house you don’t need to do a thing.
The super clearing houses and programs such as Xero, MYOB and Reckon have really done all the work behind the scenes to offer a SuperStream compliant service. All you need to do is login, type the information they are asking for and submit it. Payment details will be provided to pay through phone or online banking or Bpay.
We find this process super-easy! If you’re not sure if you are SuperStream compliant yet or not, please contact your bookkeeper, a clearing house or your payroll software provider in the next couple of months and we can help you to streamline your super. Yay!
Amanda Wolff | Bookkeeping | The Money Edge | Bundaberg