EOFY 2021 – Final Reminder Superannuation Contributions
- Published in Bookkeeping News
The end of the 2020-2021 financial year is nearly here. This is a reminder about getting a tax deduction in the current financial year for superannuation contributions.
Generally, to get a tax deduction for a superannuation contribution for your employee, the superannuation fund must have received the payment by 30 June. Making the payment before 1 July will not guarantee that this has happened.
If you want to get a tax deduction for the contributions, make sure they are paid well before 1 July 2021 so there is time for the money to be received by your employees’ superannuation funds. Otherwise, the deduction will have to be claimed in the year ending 30 June 2022.
There is a slightly different position if you use the ATO’s Small Business Superannuation Clearing House (“SBSCH”). If you make the superannuation contributions to the SBSCH on or before close of business on 30 June, the ATO will consider that the payment has been received by the employees’ superannuation funds and you will get a tax deduction. This concession only applies to the SBSCH and not other clearing houses.
Also, please remember that the super contribution rate increases to 10% from 1 July 2021. Payments of wages on or after this date will be subject to this superannuation contribution rate, even if some of the wages have been earned in the current financial year.