Books Advantage September 2008

Super Choice & Super Guarantee

This month is a reminder to get your staff super obligations exactly right. And what happens if you don’t.

1.      “Employees”

Might include contractors, and almost certainly will include yourselves in a corporate structure. Paying your own super is not optional.

2.       Super Choice Forms

You must hand out the Tax Office super choice forms, designating a default fund. Keep evidence (i.e. a photocopy). Its not compulsory for employees to fill these out.

3.       If they don’t..

Pay in 9% to the default fund within 28 days of the quarter end. Don’t wait for the form to come back.

4.       If they do..

You must pay into the fund they nominate. There should be enough details to join that fund as employer.


If you pay into the wrong fund, there’s a 25% penalty.

5.       If you don’t, or don’t pay in time.

The Guarantee charge applies. You must pay the same amount to the ATO anyway, plus an admin fee, plus interest .

6.       The Guarantee charge is not tax deductible.

Yes not deductible. So keep super up to date.

7.       How much?

Minor changes came into effect on 1 July concerning what’s caught for the 9% charge. If you’re not sure about bonuses, overtime etc, seek advice.

8.       Off topic – “salaries” are different for workers compensation purposes.

Workers compensation includes super and fringe benefits. Again if in doubt, seek advice.


The material herein is of the nature of general advice only, and neither purports, nor is intended to be advice on any particular matter  that is tailored to your specific circumstances. Neither this firm nor any member or employee of the firm undertakes responsibility in any way whatsoever in respect of reliance solely upon this material, including any errors or omissions howsoever caused.

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