Blog

May 15

Pay Super for Employees Earlier

Posted by Peter Marmara-Stewart at Wednesday, May 15, 2019

To claim a tax deduction for Super, it needs to be physically paid. By paying your June quarter, or month’s Super before the end of the financial year 30th June, you will get a tax deduction for the year.

Paying your employees’ Super a month earlier than you need to, can create a significant one-off tax benefit. If you have $20,000 to pay in Super for your employees prior to the 30th June, this can result in a tax saving of up to $9,400.

If this is something that you want to do, you will need to ensure that the payment you are making is processed before the 30th June. To ensure this is done in time, it is best to process the payment a week before the end of financial year.

Something to note is that, this creates a one-off tax benefit, as you are paying Super that you would usually pay in July earlier, to get the tax deduction.