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Simple super tax appeal
Do Nothing Option A Super Risk
Self Managed Superannuation Fund Update.
Stress test your portfolio before market does
Market Notes - May 2006
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Investment Markets Data - Update to 31 May 06.
A dynamic duo of tax cuts and super
Super Guarantee Contribution Penalties
Splitting Super Contributions
Superannuation highlights from the Federal Budget 2006
Market Notes - April 2006
Market Update - General - April 2006
Investment Markets Data - Update to end April 06.
Budget 2006.
Aged care: the rising cost of getting old.
Property Trusts.
Market Notes - March 2006
Market Update - General - March2006.
Investment Markets Data – Update to end March 06.
Super Guarantee Contribution Penalties
If an employer is late in making their superannuation guarantee contributions on behalf of an employee they must lodge a Superannuation guarantee charge statement - quarterly form and pay a penalty.

Under the old penalty system the employer would have paid:

  1. The superannuation owing into their employee's fund
  2. The tax office the equivalent amount
  3. A penalty fee
  4. An administration fee.

The money received by the tax office would then have been transferred to the employees' complying superannuation fund(s) or retirement saving(s). As a result, the employer would have effectively paid the employee's super contributions twice - once to the superannuation fund(s) or retirement savings account(s) and once to the tax office.

Under the new penalty system the employer will still pay the same fees as outlined above.

The difference is if they pay at least within 28 days after the due date, what they pay the tax office can be used to offset or reduce what is owe to the employee's superannuation fund. This avoids the employer having to double pay into an employee's super.

The effect is the penalty and administration fee still apply.

Some employers may adopt a different approach and choose to regard a (late) payment to the super fund as an early payment on account of the next quarter and pay the full guarantee charge to the tax office.

 

 

 

 

 

 

 



21st-May-2006