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A. What to consider as an employer

The Superannuation Guarantee Charge (SGC)

Section: 1.5

1.5 The Superannuation Guarantee Charge (SGC)

Employers who do not pay superannuation contributions for an employee for a quarter are liable to pay a penalty via the superannuation guarantee charge.

What is the charge made up of?

The charge (not tax-deductible) is made up of:

  • Interest on the amount (at 10%)
  • An administration fee of $20 per employee, per quarter
  • SG shortfall amounts (this also includes choice liability calculated on employee's salary or wages)

Payment dates

Employers must lodge their SGC statement and pay the charge by the due date. If the employer pays late, they may offset the SGC or carry forward as pre-payment of a future contribution.

SGC payment schedule:

Quarter Super guarantee payment due date Super guarantee charge and statement due date
1 July - 30 September 28 October 28 November
1 October - 31 December 28 January 28 February
1 January - 31 March 28 April 28 May
1 April - 30 June 28 July 28 August

The ATO provides a Super Guarantee Charge (SGC) statement spreadsheet that employers who have missed payments can use to calculate the amount of SCG that they are required to pay.

When a due date for payment falls on a weekend or public holiday, they can make the payment on the next working day.

Once the employer lodges a statement and pays the SGC, the ATO will transfer the super guarantee shortfall amount and any interest to the employee's chosen super fund.

Extension of time

Employers who will miss the due date for lodging an SGC statement, are able to ask for an extension of time to lodge and time to pay. This request must be before the due date, in writing, stating their need for an extension. The nominal interest will continue to accrue until it is lodged.

Source: ATO

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Monday, June 7, 2021