Are Your Super Contributions Really Paid on Time? Here's What You Need to Know About Clearing Houses Blog Post

When it comes to paying your employees’ superannuation, timing is everything. Many employers assume that once the payment is made to a clearing house, the job is done. However, this could lead to late payments — and potentially costly consequences.

What is a Clearing House?

A clearing house is a service that distributes super contributions to your employees’ super funds on your behalf. While it’s a useful tool for managing your obligations, there’s an important catch you need to be aware of.

Timing Matters

Super Guarantee (SG) payments made to a commercial clearing house before the due date may still miss the deadline if they don’t reach the employee’s super fund in time.

Your employee's super contribution is only considered 'paid' once it is received by the super fund — not the date it’s received by the clearing house.

That means if you pay into a clearing house on the due date and the clearing house takes several days to process it, your payment could be considered late.

What Does This Mean for You?

To stay compliant:

• Allow plenty of time for your SG payments to be processed by your clearing house and reach the super funds.

• Check the processing timeframes required by your clearing house — they can vary.

• Consider setting calendar reminders well in advance of due dates to avoid delays.

Using the ATO's Small Business Superannuation Clearing House?

If you're using the ATO’s Small Business Superannuation Clearing House, you're in luck. Payments made through this service are considered 'paid' on the date they’re received by the clearing house — not when they hit the super fund. This offers small businesses a bit more certainty when meeting their SG obligations.

Key Takeaway

Don’t get caught out by clearing house processing delays. Make your SG payments early to ensure they reach your employees’ super funds on time and avoid penalties. When in doubt, speak with your accountant or bookkeeper to help keep your super obligations on track.