When is a contribution ‘received’?

Employers are reminded a contribution does not become a contribution until it is actually received by a superannuation fund.

This confirms the ATO’s view that contributions made by electronic funds transfers occur when the amount is received by the superannuation provider or credited to the relevant account. The fact that money has left an employer’s (the payer’s) bank account is irrelevant. This is especially important to note for SuperStream processing where clearing house or credit processing holdups may result in superannuation guarantee (SG) penalties being applied by the ATO. For example, if an employer makes a contribution payment via BPay or through a clearing house in June, but they do not arrive at First Super until July, they will be recognised in the new financial year, even though they may have left the employer’s bank account in June.

What does this mean for you?

Holdups may result in imposition of SG penalties, so be sure to get your SG contributions to First Super on time. Directors have a legal responsibility to ensure that their company meets its pay as you go (PAYG) withholding and superannuation guarantee charge (SGC) obligations. The director of a company that fails to meet a PAYG withholding or SGC liability by the due date automatically becomes personally liable for a penalty equal to the unpaid amount when a PAYG withholding or SGC liable for a penalty equal to the unpaid amount. When a PAYG withholding or SGC liability remains outstanding, the ATO may issue a director penalty notice to recover the penalty.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fun (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as investment advice. Content was accurate at the date of issue, but may subsequently change. You should contact us on 1300 360 988 for updated information and to obtain a copy of the product Disclosure Statement.