As an employer, there are many things to remember when paying superannuation for employees; but knowing the difference between the super guarantee (SG) and the Super Guarantee Charge (SGC) might just be the most important. 

The SGC is a penalty payable to the ATO if an employer did not pay employee super: 

  1. on time by the quarterly due date 
  2. at the current rate of 10.5% 
  3. to the correct super fund (the employee’s chosen fund)

#1 How much is the SGC? 

The SGC payable is calculated based on how much superannuation is owed.  It includes: 

  1. the shortfall amount (the superannuation contributions not paid or paid late) 
  2. interest of 10% per annum 
  3. an administration fee (currently $20 per employee, per quarter)

The SGC is based on the employee’s salary and wages, which may be greater than their ordinary times’ earnings. 

#2 How is SGC disclosed to the ATO 

The SGC is disclosed to the ATO by completing an SGC statement.  The SGC statement can be lodged online through the Online forms section of Online service for business or Online services for individuals and by a registered tax or BAS agent. 

#3 What are the SGC payment and lodgement dates? 

The due date for payment of the SGC and lodging the statement is one calendar month after the SG due date. 

Quarter 

Super Guarantee (SG)

payment due date 

Super Guarantee charge (SGC)

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 

#4 What to do if super is paid late or short-paid? 

If an employer has not paid the employee’s super by the required due date or if the super is short-paid, the first thing to do is pay the super as soon as possible. 

The employer must then notify the ATO through the lodgement of the SGC statement.  Once the SGC is paid to the ATO, the shortfall and interest will be transferred to the employee’s chosen super fund (the administration fee is not passed onto the employee’s super fund). 

#5 Is the SGC tax deductible 

No.  The SGC is not tax deductible.  Further, directors of companies can also be held personally liable for the SGC. 

 

Please contact us to find out how this may impact you or your business.

Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances. 

The team at EMspire Advisory are experienced Chartered Accountants, bookkeepers, and tax agents in Sydney and would like to help you create, grow and succeed in business.  

 

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