Employers play a critical role in ensuring the future financial security of their employees by paying Super Guarantee (SG) contributions in full, on time, to the right fund and at the correct rate.
The most recent due date for quarterly SG contributions was 28 October. If you’ve missed this date, you need to get your super obligations back on track by lodging a Super Guarantee Charge (SGC) statement and paying the SGC to us by 28 November to avoid penalties. We take non-payment of SG seriously.
What is the SGC
The SGC statement lets us know of any missed or late SG payments. The SGC amount is paid to us and includes more than the regular super contributions. Unlike on time SG contributions, you can’t claim a tax deduction for the SGC. It includes:
- SG shortfall (based on salary and wages, not ordinary time earnings)
- choice liability (capped at $500)
- nominal interest (10% per annum)
- administration fee ($20 per employee, per quarter).
What amounts you pay SGC on
When completing the SGC statement, only report and pay SGC on amounts up to 12% of salary and wages to us, if your employees are entitled to SG above 12%, pay the excess directly to their super fund.
Common errors we see
If you’ve incurred SGC and aren't sure why, some common errors we see include:
- paying the SG contribution late by not allowing sufficient processing time
- not paying the full contribution amount
- not paying to the right super fund
- incorrectly calculating the maximum contribution base.
Remember, if you use a commercial clearing house, you need to allow time for payments to reach your employee’s super fund by the due date.
Tips for completing an SGC statement
If your SGC statement is incorrect or has incomplete information, this might mean delays to entitlements reaching your employees’ super funds which may result in additional penalties and interest. Follow these tips to get it right:
- follow our SGC statement guide for step-by-step instructions
- don't modify the spreadsheet format
- provide complete and accurate employee details, including:
- tax file number (TFN)
- full legal name
- date of birth
- postal address
- ensure your ABN and TFN match the employer lodging the statement
- have your payment reference number (PRN) ready to pay your SGC.
Work with us to get back on track
We understand there may be pressures on your business. Contact us as soon as possible if you’re behind, or at risk of falling behind, with your SG obligations. While we can’t extend the SG due date, we can work with you to get you back on track.
If you need help to work out how much super you need to pay for your employees and eligible independent contractors, you can:
- use our super guarantee contributions calculator
- speak with your registered tax practitioner.
You can find more information on our website or watch our helpful videoExternal Link.
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