A. What to consider as an employer
The Superannuation Guarantee Charge (SGC)
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)
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.
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Last modified: Monday, June 7, 2021