All Australian employers are required by law to pay the correct amount of quarterly super on or before the superannuation due dates 2020. Superannuation contribution payments are tax deductible to a business or individual provided they are received by the superannuation fund on or before 30 June 2020.
Many businesses pay super at the same time as they pay their staff salaries. Sometimes adjustments need to be made, and these should be paid by the superannuation cut-off date.
What are the superannuation due dates for payment 2020?
The deadlines for paying super remain the same each year, so the superannuation due dates for 2020 and 2021 super guarantee payments are:
|Superannuation Guarantee Quarter||Superannuation Guarantee Due Dates|
|1 July – 30 September||28 October|
|1 October – 31 December||28 January|
|1 January – 31 March||28 April|
|1 April – 30 June||28 July|
Due dates for the Small Business Superannuation Clearing House (SBSCH) 2020
If your business uses the Small Business Superannuation Clearing House (SBSCH), super payments need to be accepted by the SBSCH by 23 June 2020 to allow time for the employees’ super funds to receive the payments by 30 June 2020.
It is important to meet this timeframe as the timing of the payments may impact the individual tax position of employees.
For the purpose of claiming a tax deduction, superannuation payments are only considered to be paid once they have been processed and received by the employees’ super funds, not the date the SBSCH accepts the payments.
To learn more about the SBSCH visit the ATO superannuation website here: Small Business Superannuation Clearing House
Please also be aware that the ATO has issued a guidance that provided payment has been made to the SBSCH by 30 June (or the last day of any quarter) the superannuation is taken to be paid for Superannuation Guarantee purposes and the employer will not be liable for the Superannuation Guarantee Charge (SGC) for late super payments.
This only applies to SGC – for the business to claim the tax deduction, the contributions still must be received by the employees superannuation fund on or before 30 June, therefore the 23 June 2020 cut-off date applies as above.
Superannuation clearing house cut-off dates for EOFY 2020
Different superannuation clearing houses and sup have different due dates for their 30 June 2020 contributions:
- Supersuper Clearing House – 3pm Tuesday 23 June 2020
- QuickSuper Clearing House – Direct debit: 20 June 2020, EFT 25 June 2020
- Click Super Clearing House – 4pm Wednesday 24 June 2020
Due dates for contributions paid to an SMSF
The 30th of June 2020 falls on a Tuesday this year, meaning that any contributions made directly to an SMSF via EFT transfer should occur on Monday 29th of June 2020 to ensure the contributions clear into the SMSF bank account prior to 30 June 2020.
Payments made on the 30th of June 2020 may also be received by the SMSF on 30 June, however check with your bank for the relevant processing times.
If payment of a contribution is to be made by cheque or promissory note (not recommended) then the trustee must be in receipt of the cheque (dated on or before 30 June 2020) and the cheque must be cashed (cleared and deposited) into the SMSF bank account as soon as possible upon receipt, i.e. within a few business days following 30 June.
Contribution caps for 2020
Contribution caps for the year ending 30 June 2020 are as follows:
|Type of Contributions||2020 Cap||Description|
|Concessional Contributions||$25,000||Personal contributions (where a tax deduction is claimed).SG contributions from employment. Salary sacrifice amounts.|
|Non-Concessional Contributions||$100,000||Personal after-tax contributions where no tax deduction is claimed.Total superannuation balance must be below $1.6m as at 30 June 2019.|
|Non-Concessional Contributions (Bring-Forward Triggered)||$300,000||Available where a person is age 64 or under as at 1 July 2019.Maximum amount is impacted by total superannuation balance.|
With concessional contributions, it’s essential any individuals liaise with their employer or payroll office to determine the timing of contributions. Many employers might pay contributions prior to 30 June 2020 to obtain a tax deduction for their business, even though they might not typically pay SG employer contributions under after the end of the respective financial quarter.
More information on contributions including non-concessional contributions and other super contribution strategies can be found here: Superannuation and SMSF End of Financial Year Checklist 2020
How Quill Group can help when it comes to superannuation
Quill Group are more than just accountants.
We assist business owners and individuals will all aspects of their financial life including:
- Cloud Accounting Solutions including Single-Touch Payroll and Xero
- Bookkeeping and Payroll Support
- Business Performance Reporting and Advisory
- Cashflow and Budgeting
- Tax Planning, Tax Advice and Business Structuring
- Superannuation Advice
- SMSF Compliance and Advice