An Often Forgotten End of Year Tax Deduction
If you have had a good year, or just have some spare cash available, you may want to consider paying your June Super Guarantee payment early. This will reduce your taxable income for the 2022/23 financial year (it may mean a reduced amount claimable next year).
While Superannuation Guarantee payments are not due until 28 July 2023, you can pay it early to claim the deduction this year. In order to get the income tax deduction in this financial year, the superannuation must have been paid through your bank account before the 30th of June and received by the actual fund by the 30th of June.
The funds must be received by the actual super fund by 30th June to get the deduction; it’s not enough that the money has left the employer’s bank account. Although payments to the SBSCH are deemed to meet the SG obligations when the funds are received by the SBSCH, the payment of Super is still only a tax deduction if the money has been received by the super funds.
When To Pay 30th June Superannuation
The 30th June cut-off for Super has a number of implications:
Is the Super Guarantee payment deductible?
To be tax deductible this financial year your Super Guarantee payments need to be received by the employees super funds prior to June 30. We recommend making any early super guarantee payments by Friday, June 23, to be certain that they are claimable for your business.
Is the early payment of Super Guarantee payments going to exceed the employee’s annual cap?
Before paying any lump sums of super or super in advance you should ensure that your employees are aware and have given consent to any early payment. If an employee is making additional contributions to their superannuation, it is possible that the early payment of Super Guarantee super that you paid will pushed them over the contribution cap, resulting in an excess contribution charge to them
Any payroll and subsequent Super accrual after June should be paid by the normal quarterly deadline of 28th July.
