If you have made a late contribution to a super fund for an employee, you may be able to offset that payment against the amount of super guarantee charge you have to pay for that employee for that period.
- You are able to offset super guarantee contributions paid late to a super fund against the super guarantee charge, providing:
- you have made a late payment to your employee’s super fund,
- you made the payment prior to the date your original super guarantee charge assessment was made, and
- you lodge the late payment offset election with the Commissioner within four years of your original assessment date.
- The super guarantee charge is made up of three parts:
- nominal interest on that amount (10% per annum), and
- an administration fee ($20 per employee per quarter).
super guarantee shortfall amounts (including any choice liability)
You can only use late contributions to offset the nominal interest and super guarantee shortfall components of the super guarantee charge. You will not be able to offset the administration fee, or other interest or penalties.
If you elect to offset your super guarantee charge with your late payment to the super fund, then:
the late payment is not tax deductible for income tax purposes you cannot revoke the election to use the offset, and any late contribution you use to reduce the amount of your super guarantee charge cannot be used as a pre-payment for current or future periods.
Alternatively, you may be able to use a late contribution for an employee for a future quarter if the contribution is made not more than 12 months before the beginning of the quarter. If you choose this option, the contribution will be tax deductible, but you cannot also claim an offset against the super guarantee charge.