Issue
Can a payment made by an employer to a superannuation fund on 29 July 1994 satisfy the obligations of that employer in relation to the employer's superannuation guarantee obligations for the year ended 30 June 1994?
Decision
No. Under Superannuation Guarantee (Administration) Act 1992 (SGAA) employer superannuation contributions for a particular financial year must be received by the trustee of the fund by 28 July in the next financial year.
Facts
The employer operates in the transport industry. The employer made a payment by cheque to a superannuation fund in relation to the employer's Superannuation Guarantee obligations for the year ended 30 June 1994. The employer claimed that the payment was made on 29 July 1994, however, the superannuation fund argued that the payment was made on 2 August 1994 when the cheque was banked by them.
Reasons for Decision
A contribution to a fund by cheque is made when the cheque is received by the trustee of the fund, unless the cheque is subsequently dishonoured (Tilley v the Official Receiver in Bankruptcy (1960) 103 CLR 529). If the cheque is dishonoured, a contribution will not have been made at all (as per Superannuation Guarantee Determination SGD 94/5 paragraph 1).
The superannuation contributions for a particular financial year must be received by the trustee of the fund by 28 July in the next financial year (Jarra Hills Pty Limited v FC of T 97 ATC 2132; (1977) 37 ATR 1022). Note: The payment can be taken into account to reduce the charge percentage in the year ended 30 June 1995 as the payment was made after 28 July 1994 but before 28 July 1995.