The super guarantee charge

Overview

If you don't pay an employee's super guarantee (SG) amount in full, on time and to the right fund, you must pay the super guarantee charge (SGC). You must also lodge an SGC statement to us.

The SGC is more than the super you would have otherwise paid to the employee's fund and is not tax deductible.

SGC payment and lodgment dates

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

SGC payment and lodgment dates

Quarter	SG payment due date	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

If a due date falls on a weekend or public holiday, you can make the payment and lodge the SGC statement on the next business day.

Working out the SGC

The SGC includes:

1. the SG shortfall, made up of  
   1. SG calculated on salary and wages (including any overtime)
   2. any choice liability, based on the shortfall and capped at $500
2. nominal interest of 10% per annum (accrues from the start of the relevant quarter)
3. an administration fee of $20 per employee, per quarter.

The easiest option to work out the SGC is to use the Super Guarantee Charge (SGC) statement.

How to lodge SGC

There are 3 ways to lodge your SGC statement:

1. Complete the SGC statement spreadsheet and lodge using Online services for business or Online services for individuals.
2. Use the SGC calculator in Online services for business or Online services for individuals - the statement will also calculate your liability.
3. Use the SGC statement and calculator tool to generate a PDF version of your statement. You can print this and mail it to us.

Note: We don't recommend this option as there is a higher chance for mistakes and it takes much longer to process.

Complete the SGC statement spreadsheet and lodge using Online services for business or Online services for individuals

Complete the Super Guarantee Charge (SGC) statement and send it to us using the 'Secure Mail' function in Online services for business or Online services for individuals. The spreadsheet will:

• work out the nominal interest component
• not work out the super guarantee shortfall.

Make sure to:

• complete a separate spreadsheet for each quarter
• refer to the Guide to completing the Super Guarantee Charge (SGC) Statement for instructions on how to complete the statement
• use the .xls format when you save the spreadsheet.

To send the spreadsheet to us:

7. Open the 'Secure Mail' function.
8. Select 'New Message'.
9. Select 'Topic = Superannuation.'
10. Select 'Subject = Lodge SGC statement'.

You can attach up to 6 spreadsheets. The total size of the attachments needs to be 46MB or less.

Sign in to Online services for individuals

 

Sign in to Online services for business

Use the SGC statement in Online services for business or Online services for individuals

Lodge a SGC statement through the Online forms section of Online services for business or Online services for individuals.

The SGC calculator will ask you a series of questions to help work out:

• if you need to pay the SGC for your employees
• how much you need to pay.

At the end, the calculator will electronically lodge your SGC statement with us.

Sign in to Online services for individuals

 

Sign in to Online services for business

Use the SGC statement and calculator tool and mail the statement

Use the SGC statement and calculator toolOpens in a new window to work out:

• if you need to pay the SGC for your employees
• how much you need to pay.

We don't recommend this option as there is a higher chance for mistakes and it takes much longer to process.

If you need to pay the SGC charge you can create a PDF version of the SGC statement.

If you are a WPN holder without an ABN, enter 70707070707 into the ABN section to complete the SGC statement. Include a cover note quoting your WPN as a reference when you mail the signed and completed statement.

Mail the completed statement to:

Australian Taxation Office
PO Box 3578
ALBURY  NSW  2640

Lodging and making payment for the SGC

Super payment due dates occur quarterly. To avoid paying the SGC, you must pay on time, in full and to the right fund.

If you can't pay by the due date, you still need to lodge the SGC statement on time.

Minimise the general interest charge (GIC) that accrues on any outstanding SGC by making your payment straight away.

To pay your SGC you need a payment reference number (PRN).

If you have an SGC-related notice or payment slip from us for the same ABN or WPN, you can use the same PRN that is on it to pay us.

In Online services for business and Online services for individuals, the PRN can be found at the:

• print option on the SGC lodgment summary screen
• accounts summary screen
• payment screens for BPAY or Other payment methods.

If you don’t have a PRN you can phone 1800 815 886 between 8:00 am and 6:00 pm, Monday to Friday. Make sure you have your ABN or WPN and contact details with you when you call.

When you have your PRN, you can pay us the SGC, for more information on payment methods refer to How to pay.

Why lodge on time?

When you lodge on time, you can access our support services that provide help with paying. If you can't pay in full, but you lodge by the due date, you may be able to set-up a payment plan to pay in instalments.

Once you become liable to pay the SGC, nominal interest accrues from the first day of the quarter to the later of the due date for that quarter or date you lodge the SGC statement. Nominal interest is part of the SGC and, by law, cannot be reduced or waived.

Request an extension to lodge an SGC statement

If you require an extension of time to lodge an SGC statement, you must make the request before the due date. Phone us on 13 10 20 and explain why you need an extension.

An extension will not prevent the imposition of both nominal interest and shortfall general interest charge (GIC) for the quarter. Shortfall GIC applies from the date of lodgment until the SGC is paid in full.

Our collection approach to unpaid SGC

We prioritise the collection of unpaid SGC debts. We'll work with you to address outstanding amounts but if you don't engage with us we'll take stronger action which can include additional penalties.

If an employee reports you for unpaid super, we'll start an investigation on their behalf. We'll keep them informed of the investigation and the progress of our debt recovery actions.

If we find or reasonably suspect that you haven't met your obligations, we may inform all your affected employees and any former employees of any SG shortfall.