The Costly Mistake of Late Super Payments

As a bookkeeper, I see it all the time—superannuation being treated like just another business expense. But here’s the thing: it’s not. Super is a legal requirement, and falling behind on payments can lead to some serious consequences for your business.

Let’s break down what actually happens when super payments are late, and how you can avoid the stress and added costs.

What Happens If You Miss a Super Payment?

Missing a super deadline is more than just a minor oversight. Here’s what you’re in for if payments aren’t made on time:

• No Tax Deduction

  Late super payments can’t be claimed as a tax deduction. That means you’re paying out of pocket with no tax break to soften the blow.

• Super Guarantee Charge (SGC)

  The ATO doesn’t just let it slide. They’ll hit you with the SGC, which includes the unpaid super, interest, and an admin fee. It's a hefty price to pay.

• Extra Paperwork

  You’ll need to lodge an SGC statement for every quarter you miss. More admin, more time, and more stress.

• ATO Enforcement

  Ongoing non-compliance can lead to audits, director penalties, and legal action. It’s not something you want to mess around with.

  
  

How to Stay Ahead of Super Obligations

Fortunately, staying on top of your super responsibilities doesn’t have to be complicated. Here’s what I recommend to all my clients:

• Use Accounting or Payroll Software ~ Tools like Xero can automate your super payments, reducing the risk of missed deadlines.

• Pay Early ~ Super is due quarterly—by the 28th of the month after each quarter ends. Mark it in your calendar and don’t leave it to the last minute.

• Create a Dedicated Super Account ~ Setting aside super contributions in a separate bank account helps keep your main cash flow clear and prevents accidental overspending.

• Review Your Payroll Regularly ~ Double-check calculations and payment settings to make sure everything’s accurate and up-to-date.

  
  

Final Thoughts

Late super payments aren’t just a financial issue—they can affect your relationship with employees and damage your business’s reputation. If you’re finding it tough to keep up, it might be time to review your systems.

Need help getting things in order? Let’s talk about setting up automated solutions and making super one less thing you have to worry about..

Missing your super obligations can be a costly mistake for business owners