Watson & Watt

08/05/2025

What's due in May? Pretty much everything

23/04/2025

When you register for e-invoicing… but realise no one else has

20/02/2025

❌ Did you pay December Qtr super by 28 Jan? If you didn't stop scrolling & start reading! ❌

Superannuation is not just another bill! It’s your employees’ money, and failing to pay it on time can have serious consequences for you and the business.

Many business owners don’t realise that late super payments can’t be simply “caught up” later.

Once a payment is late—even by a day—it becomes a Superannuation Guarantee Charge (SGC) obligation, and that comes with additional penalties and deadlines.

🔹 Here’s what happens when super is paid late:

1️⃣ You lose the tax deduction – Superannuation contributions are usually tax-deductible, but late payments don’t qualify, meaning you could be paying more tax than necessary.

2️⃣ You must lodge an SGC statement by 28 days after the super due date – If you miss a due date, you’re required to submit an SGC statement to the ATO, which includes the unpaid super, interest, and administration fees.

3️⃣ You’ll pay interest and penalties – The ATO imposes 10% interest per year on late payments, plus administration fees. If you fail to report and pay, additional penalties of up to 200% can apply.

4️⃣ Directors are held personally liable – If super is unpaid the directors are personally liable under the Director Penalty (DPN) Regime.

5️⃣ Your business reputation takes a hit – Employees notice when their super isn’t paid on time. It affects trust, morale, and even your ability to retain staff.

💡 How to stay compliant and avoid penalties:

✅ Pay super on time – Super is due quarterly, but with payday super coming in from 1 July 2026, businesses will need to start thinking about processing super contributions with every payroll cycle.

Read more on what this means for your business here:
👉 https://lnkd.in/gWaW3cnE

✅ Use a Super Clearing House – This ensures payments and data are reported correctly to the ATO and the super funds. It's also compulsory.

✅ Create a system - Put a repeating reminder in your phone/calendar, ask ChatGPT to remind you, teach your dog to bark when it's time. It doesn't have to be fancy, it just needs to get you to pay it.

✅ Seek professional help – If you’re struggling to keep up with super obligations, work with an accountant to get back on track before the ATO steps in.

Super is the canary in the coal mine. If you can't pay super each pay run, you have a cash flow problem. Sticking your head in the sand, is not a solution to that problem. You need to change your business. Quickly.

Superannuation is one of the most common compliance issues that lands businesses in hot water. But with the right systems in place, it’s completely avoidable.

If you’re worried about super, get in touch

🔗 Read more: https://lnkd.in/g6pHN26x

12/02/2025

Can't remember when stuff is due? We've got you.

20/07/2023

Somethings like overtime or bonuses don't required superannuation to be paid because they aren’t ordinary times earnings.
But be careful. Super is a minefield!

Four things happen if you don't pay superannuation on time...none of them good.Being consistently late with super is a sure fire sign your business is in a bit of trouble. Most of the time it's cash flow that causes it, other times its just poor internal processes.  Both of which aren't making your...

19/07/2023

"From 1 November 2021, employees starting a new job will have the super fund used at their former employer Stapled to them i. e it will follow them around to their next employer."

You know how it goes, you hire a new employee, send them the super choice form and they leave it blank or don't return it, so you're required to set up and contribute to your "default super fund".But from 1 November 2021 this is changing as part of the Your Future, Your Super legislation. Huzzah! [....

06/07/2023

"Every hour they’re doing billable work you win, and offsets the hours that can’t be charged annual leave, sick leave, toilet breaks, admin time etc."

Business is all about leverage.  Leveraging other people's (employees) time, leveraging other people’s (investors, banks) money, leveraging systems and processes and leveraging assets (property, machines, software etc).And of course hand in hand with leverage is risk.  But also reward.The Power ...

05/07/2023

"If you’re paying rent of $60,000 p. a at the moment, you could fund a $1,000,000 property at 2.5% interest, with 100% Loan to Value Ratio and have that loan paid off in 21 years!"

Back in the day, commercial property loans were pretty standard;  30% deposit and 10-15 year term.  Obviously 30% deposit makes it difficult for most when it comes to funding position, then add in the short loan term and bye-bye cash flow.  So the good news is that it's (at time of writing) 2021 ...

03/07/2023

"And it is reasons like this, that you don’t have the cash to pay the BAS, or super or your tax bill on your tax return and that's why you need a cash flow forecast!"

A common complaint I hear, mostly from business owners, is they are "paying too much tax".Most employees get it.  They receive the net wages from their employer, and only get a tax deduction when they’ve spent their cash money to do their job.Some business owners on the other hand, think every ti...

23/03/2023

The Hardest Question In Business

Those that have answered it usually end up succeeding. Those that don't answer it, usually don't succeed. So what is the question?