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ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

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Ultimate Partner Kym__Yeoward
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ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

 

Hi @Steven_M @Hayden_B and @Suja_P 

 

From one of my clients, earlier today:

The Australian Taxation Office's Small Business Superannuation Clearing House has announced that they must receive June Quarter superannuation contributions by 5 p.m. on Friday 21st June, to ensure that superannuation funds using the SBCH receive their contributions by 30th June. (This even though the deadline for June Quarter super contributions to be paid to funds is 28th July).

 

See the attached story from the SBSCH News Room - SBSCH End-of-Financial-Year Processing Dates

 

For many employers with pay periods ending between 21st and 30th June, this may be difficult to achieve.

 

Does MYOB have any advice on how to handle this ? Particularly for employers using Single Touch Payroll.

 

Kym Yeoward CPA & CC

Darwin (Palmerston)

 

6 REPLIES 6
Super Cover User bungy15
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

@Kym__Yeoward 

 

Hi Kym

 

I received the same email and wondered the same thing.  All super clearing houses have a deadline ranging from the 20th to 24th June. I understand that to claim a tax deduction payments must be received by the fund by 30 June but my pay week finishes on Thursdays with payment made on fridays. Am I supposed to guess two weeks pay (I’m only in the office Tuesdays and fridays so would need to pay super on 18th) for my casual employees to make the June 20 deadline, process pays early but not declare or send reports until Fridays when payment is made?!

 

This year is so much fun 😜

Cheers

Tracey

Ultimate User gavin12345
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

Hi, My take would be that provided the super fund receives the payment by 28 July you have complied with your super guarantee obligations. That's the law. The newsletter vaguely refers to 'for taxation purposes' - so if you want to claim a tax deduction this year, it must be processed by the clearing house by 21 June, otherwise you claim the tax deduction next FY. This is just a timing issue for deductability and nothing to do with SGC compliance - poorly worded newsletter. Most businesses pay the June contribution in July and claim in that financial year (ie next). Regards Gavin
Super User Elizabeth_Adamson
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

My accountant advises the same as Gavin - it relates to tax deductibility within the current 2018/2019 financial year. Cheers Liz
Super Cover User bungy15
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

Hi Gavin and Liz Firstly my forum is playing up and I’ve lost the ability to tag or log in from a different device. I understand that it is for tax deduction purposes but has always been a ridiculous ruling by the ATO in my opinion, made even worse by STP. We have until the 14th July to finalise Payroll, so make the super deadline the 4th July. And that particular email is only going to add to the EOFY confusion and chaos. It doesn’t explain the reason for paying by the 21st June, just says payments must be received by then. Cheers Tracey
Super Cover User bungy15
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

Whoa I can’t give Kudos either 😥
Ultimate Partner DuncanS
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Re: ATO Small Business Clearing House - June Qtr super contributions -payable by June 21

@Kym__Yeoward @Elizabeth_Adamson @bungy15 @gavin12345 

 

My understanding of the deductibility for Super payments is that they must bee received by the Super Fund, and allocated to the members account, before 30 June.

 

I suggest employers paying Super, using whatever means, do so before 20 June.

The alert from the ATO could have been better worded but the purpose was to inform to use the ATO Clearing House before the specified date to enable deductibility in FY19.

 

Some Directors also topup to the $25,000 by salary sacrifice in June.

By example a Salary of $100,000 has SG of $9500.

The Director may wish to make a topup of $15,500 in June.

It is important that this payment is made before say 20 June.

 

As Gavin mentions, the SG law requires payment of SG within 28 days within the end of the quarter.

For my clients, I pay April and May SG in June and June SG in July.

 

The question then arises what does the BAS Agent or Tax Agent do with the June SG not paid in June.

An adjustment must be made via the P&L/Balance Sheet or as an adjustment on the Tax Return.

I prepare Journals within MYOB at 30 June and 01 July for the June SG not paid in June.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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