Workers are owed over $3.6 billion in superannuation guarantee according to the latest Australian Taxation Office estimates – a figure the Government and the regulators are looking to dramatically change.

Superficially, the statistics on employer superannuation guarantee (SG) compliance look pretty good with over 94%, or over $71 billion, collected without intervention from the regulators in 2020-21. Despite these gains, 5.1% equates to a $3.6 billion net gap in payments that should be in the superannuation funds of workers.

Single touch payroll matched to super fund data

Single touch payroll (STP), the reporting mechanism employers must use to report payments to workers, provides a comprehensive, granular level of near-real time data to the regulators on income paid to employees. The ATO is now matching STP data to the information reported to them by superannuation funds to identify late payments, and under or incorrect reporting.

When SG is paid late

If an employer fails to meet the quarterly SG contribution deadline, they need to pay the SG charge (SGC) and lodge a Superannuation Guarantee Statement within a month of the late payment. The SGC is comprised of the employee's superannuation guarantee shortfall amount, 10% interest p.a. on the SG owing, and an administration fee of $20 for each employee with a shortfall per quarter. Unlike normal SG contributions, SGC amounts are not deductible.

'Payday' super from 1 July 2026

The Government intends to introduce laws that will require employers to pay SG at the same, or similar time, as they pay employee salary and wages. Subject to the passage of the legislation, the reforms are scheduled to take effect from 1 July 2026.

Download the full Client Newsletter November 2023