Prime Super will again be mailing a Superannuation Guarantee alert out to registered Employers at the end of May 2003 to alert employers of the critical dates for payment of their SG contributions. The current 2002-03 financial year, will be the last year that annual contributions will be allowed. SG liability arising for the period after 1 July 2002 , must be paid quarterly.
New Laws from 1 July 2003 |
Old Laws up to 30 June 2003 |
Quarterly Contribution Payments
1. Employers must make SG Contributions for employees on a quarterly basis. |
Annual Contribution Payments
1. Employers make SG Contributions for employees on an annual basis. |
2. SG shortfalls will be determined on a quarterly basis. |
2. SG shortfalls are determined on an annual basis. |
3. Contributions to make up any shortfalls can be made up to and including the 28th day following the end of the quarter in which the shortfall occurred. |
3. Contributions to make up any shortfalls can be made up to and including 28 July 2003 . |
4. Where the employer discovers a shortfall after the 28th day of the quarter in which the payment was due, a SG statement must be lodged with the ATO by the 14th day of the next month. |
4. Where an employer discovers a shortfall after 28 July 2003 , a SG statement, with payment must be lodged by 14 August 2003 . |
5. Shortfall payment must accompany this SG statement. |
5. Shortfall payment must accompany this SG statement. |
Tax Deduction
Where contributions are made after the 28th day of the month following the end of a quarter, they are not tax deductible. Neither is the interest due or the administration charge. |
Tax Deduction
Where contributions are made after 28 July 2003 , they are not tax deductible. Neither is the interest due or the administration charge. |
Penalty Interest
The rate will remain at 10% but will be calculated from the beginning of the quarter in which the liability arose. As a transitional arrangement, the ATO will waive this penalty interest for the first two quarters of the 2003/2004 financial year. |
Penalty Interest
This is 10% of the shortfall amount from the beginning of the year in which the liability arose. |
Administration Charge
1. A flat rate of $0.
2. $20 per employee per quarter for whom the shortfall has occurred.
As a transitional arrangement, the ATO will waive this administration charge for the first two quarters of the 2003/2004 financial year. |
Administration Charge
1. A flat rate of $50; plus
2. $30 per employee for whom the shortfall has occurred. |
Contribution Threshold - No change
No contributions are payable by the employer if an employee earns less than $450 in a month. |
Contribution Threshold
No contributions are payable by the employer if an employee earns less than $450 in a month.<> |
Reporting to Employees
1. Employers must report to each employee the amount paid for the employee.
2. Employers must also report the destination of contributions to employees.
The reporting must be done within 30 days of each contribution being made. |
Reporting to Employees
Employers are not required to report to employees about contributions made on the employees’ behalf. |
Any employer who misses the quarterly SG payment deadline is able to lodge their SG Contributions or shortfall in an SG Statement with the ATO up to 14 days after the SG due dates ie. 14 November, 14 February, 14 May and 14 August. The ATO will still impose the SG charge but will not impose an additional general interest penalty unless you go beyond these dates.
This SG Alert provides general information only. Each employer’s requirement to pay SG Contributions will vary depending on each employer and their employees’ individual circumstances. Further detailed information is available on the ATO’s website at www.ato.gov.au/super
Should you require further information please contact Prime Super on 1800 675 839. 
