On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate.
If you need help to work out how much super you need to pay for your employees after 1 July, you can use the ATO’s super guarantee contributions calculator.
It’s important you pay your workers the correct amount of super. The ATO’s superannuation guarantee eligibility decision tool will help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes.
The super rate is scheduled to progressively increase to 12% by July 2025. You can find the scheduled rate increases and dates on the ATO website.
Super guarantee compliance approach
The ATO says its super guarantee compliance approach supports employers who engage with it and want to get things right. But it also says it has tools and calculators to help employers understand and meet super guarantee obligations, such as those mentioned above.
The ATO will take firmer action for employers unwilling to meet super guarantee obligations. In some cases, it will undertake a super guarantee audit of an employer, and raise Super Guarantee Charge assessments with additional penalties for not lodging the statement by the due date.
If you’re unsure what action to take for your situation, the ATO has a dedicated telephone line to help — 13 10 20.
Issues meeting obligations
If you are having trouble meeting your super guarantee obligations, you should make a voluntary disclosure by completing and lodging a Super Guarantee Charge statement by its due date, even if you cannot pay it in full.
If you do not lodge the SGC statement by the due date, a Part 7 penalty will apply. However the ATO says it is more likely to reduce or waive the penalty if:
- you make a genuine attempt to meet super guarantee obligations
- you have a good compliance history.
For example, it may reduce a penalty for an employer who lodged a SGC statement after the relevant due date, but before being notified of ATO compliance action. If you do not lodge an SGC statement before audit action has started, a greater Part 7 penalty can apply. This could be at least 100% of the SGC.
The ATO can also help you:
- complete an SGC statement
- work out a payment plan when you are unable to pay on time
- understand your super guarantee obligations through its voluntary online Super guarantee employer obligations course.
Unwilling to meet obligations
The ATO will take stronger compliance action – including imposing additional penalties – if you do not:
- engage with it promptly by replying to its correspondence
- take steps to resolve your outstanding super guarantee obligations.
The ATO may also issue a:
- SGC liability estimate
- garnishee notice
- director penalty notice
- direction to pay SGC
- education direction to complete the Super guarantee employer obligations course.
It says it take this approach with employers who:
- repeatedly do not pay the correct amount of super guarantee
- make it difficult for it to determine an SGC liability
- repeatedly fail to keep appointments
- repeatedly fail to supply information without an acceptable reason
- deliberately supply information that is irrelevant, inadequate or misleading
- engage in any behaviour to delay the supply of information.