A reminder to employers that their December 2022 superannuation guarantee (‘SG’) contributions were due by 28 January 2023. Do not forget the two changes to SG that commenced on 1 July 2022:

•  The rate increased from 10% to 10.5%;
•  Employees no longer need to earn $450 per month to be eligible.

Employers now need to make super contributions for all eligible employees, regardless of how much they were paid – their earnings amount is not relevant. However, employees who are under 18 still need to work more than 30 hours in a week to be eligible. The ATO has the SG eligibility tool to work out if an employer has to pay super for its employees.

If an employer does not pay the correct amount of SG in full and on time, the employer will need to pay the super guarantee charge (SGC) and:

•  Lodge an SGC statement with the ATO by 28 February even if the employer cannot pay their SGC obligation in full;
•  Pay the SGC to the ATO, or contact the ATO to work out a payment arrangement.

If an employer has an obligation to lodge an SGC statement by 28 February and fails to do so, a penalty of up to 200% of the SGC may be applied.

Ref: ATO website, Small business newsroom, 12 January 2023