If employers fail to meet their Superannuation Guarantee obligations by the due date, the consequences can be severe and numerous:
- If the employer is a company, the directors may be held personally liable for a penalty equal to the unpaid amount.
- The employer can be denied a deduction for the contribution (for a deduction to be claimed, the superannuation fund must have actually received the contribution by the quarterly deadline).
- Employers may be liable to Superannuation Guarantee Charge consisting of:
- SG shortfall amounts (including any choice liability) calculated on your employees salary or wages which is a wider concept than ordinary time earnings.
- Interest on those amounts (currently 10%).
- An administration fee ($20 per employee, per quarter).
Going forward, in order to meet their Superannuation Guarantee obligations, employers need to be SuperStream compliant from the following dates:
- 31 October 2015 for employers with 20 or more employees.
- 30 June 2016 for employers with less than 20 employees.