The super guarantee charge

Overview of the SGC

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)
• lodge an SGC statement with 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 paying SGC and lodging the SGC 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 pay the SGC 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). The nominal interest component is calculated from the first day of the quarter, to the quarterly due date or the date the quarterly SGC statement is received by the ATO (whichever occurs later)
3. an administration fee of $20 per employee, per quarter.

The easiest way 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:

• Complete the SGC statement and lodge using ATO online services.
• Use the SGC calculator in ATO online services – the statement will also calculate your SGC liability.
• 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 of mistakes and it takes much longer to process.)

Complete the SGC statement spreadsheet and lodge using ATO online services

You can 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 you:

• 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 your spreadsheet.

To send your spreadsheet to us:

1. Open Secure mail.
2. Select New message.
3. Select Topic = Superannuation.
4. Select Subject = Lodge SGC statement.

You can attach up to 6 spreadsheets (each attachment has a maximum file size of 6 MB).

Log in to Online services for business

 

Log in to Online services for individuals

Use the SGC statement in ATO online services

You can 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 you 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.

Log in to Online services for business

 

Log in to Online services for individuals

Use the SGC statement and calculator tool and mail the statement

You can use the SGC statement and calculator tool to work out:

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

We don't recommend using this option as there is a higher chance of 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 your statement to us.

Mail your signed and completed statement to:

Australian Taxation Office
PO Box 3578
ALBURY  NSW  2640

Lodging and paying 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.

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

Payment reference number

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 on it to pay us.

You can find your PRN in Online services for business or Online services for individuals, 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 us on 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 your SGC.

For more information on payment methods, see 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 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 nominal interest and shortfall general interest charge (GIC) being imposed for the quarter. Shortfall GIC will apply 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 and we'll work with you to address outstanding amounts. If you don't engage with us we'll take stronger action if you don't pay, which can include additional penalties.

We also receive employee referrals of unpaid super.

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.