Crackdown on Super Guarantee Non-payment

The Association of Superannuation Funds of Australia (ASFA) has called on the Federal Government to better fund the tax office to audit businesses for unpaid superannuation entitlements.

ASFA chief executive, Martin Fahy said the association was calling for an additional $10 million a year for the next four years to aid the Australian Taxation Office (ATO) in tracking employers failing to pay employees their SG.  Fahy said non-payment of super affected 690,000 employees or 6.5 per cent of the workforce.

In the 2023-24 Budget, the Government announced a reform to align employers’ payment of Superannuation Guarantee (SG) contributions with salary and wages, instead of the current quarterly requirement.

From 1 July 2026, an employer will be required to make SG contributions on ‘payday’. Payday is the date that an employer makes an Ordinary Time Earnings (OTE) payment to an employee.  Each time OTE is paid, there will be a new 7 day ‘due date’ for contributions to arrive in the employees’ superannuation fund. This provides time for the movement of funds through the payment system, including clearing houses. An employer will be liable for the new SG charge unless SG contributions are received by their employees’ superannuation fund within 7 calendar days of payday.

Late super payments could become far more costly for employers, with penalties reaching up to $10,000 per breach under strengthened enforcement rules. The federal government says the crackdown is designed to ensure workers receive their retirement savings on time — not months later.

Author

Peta Stephen