Ensure your employer paid your super last month

In a presentation last Thursday night, Australian Taxation Office (ATO) second commissioner Jennie Granger said that of the 2,200 employers selected and visited since July 2008, around 1,045 had not met their superannuation guarantee obligations. (Reported here.)

With many small businesses struggling with cash flow at the moment it can be very tempting for them to not pay their compulsory superannuation contributions on time, if at all. There have been plenty of segments on current affairs shows of employees suddenly discovering they have not been paid superannuation for years. Then the business goes into liquidation and they never receive what they are owed.

This should not happen to you – unless you are ignoring your superannuation.

The compulsory 9% contribution must be paid at least quarterly. The deadline is the 28th day after the end of the last quarter. The last contribution was due on 28th January. So go online or call your superannuation fund and check your last contribution was paid. (Salary sacrifice amounts must be contributed in the same month they are sacrificed.)

If you are missing a contribution then confront your employer. Be as understanding as you like but just make sure you are informed about why it is late and precisely when it will be paid.

This could be one of your best indicators of the health of your employer and the likelihood of you losing your job.

Author: Matt Hern

Certified Financial Planner professional, Matt Hern has three times been awarded as one of Australia's Top 50 Financial Planners by The Australian Financial Review Smart Investor. He is passionate about guiding you on the right financial choices to achieve what you really want. Matt Hern is an Authorised Representative of Charter Financial Planning Limited AFSL 234665. All information is general advice only.