As an employer, ensuring your employees’ superannuation is paid correctly and on time is one of your most critical responsibilities. The most recent quarterly Super Guarantee (SG) contribution deadline was 28 October.
If you missed this date, it’s essential to act now to get your obligations back on track and avoid further penalties by lodging a Super Guarantee Charge (SGC) statement and paying the charge to the ATO by 28 November.
Understanding the Super Guarantee Charge (SGC)
Lodging an SGC statement is the formal way to report any missed or late SG payments. Importantly, the SGC is not just the unpaid super amount. It is a penalty charge paid directly to the ATO, and unlike timely super contributions, you cannot claim a tax deduction for it.
The SGC is comprised of:
The SG shortfall (calculated on salary and wages, not just Ordinary Time Earnings)
A choice liability (capped at $500)
Nominal interest (10% per annum)
An administration fee ($20 per employee, per quarter)
If your employees are entitled to an SG rate above 12%, you only pay the SGC to the ATO on amounts up to 12% of their salary and wages. Any excess must be paid directly to their super fund.
Common Errors and How to Avoid Them
The ATO frequently sees employers make these mistakes, which lead to SGC liabilities:
Late Payments: Not allowing sufficient processing time, especially when using a commercial clearing house.
Underpayment: Not calculating and paying the full contribution amount.
Incorrect Fund: Paying contributions to the wrong super fund.
Calculation Errors: Incorrectly applying the maximum contribution base.
Tips for Completing Your SGC Statement Correctly
An incorrect or incomplete SGC statement can cause delays and additional penalties. Follow these tips:
Use the official SGC statement guide for step-by-step instructions.
Do not modify the provided spreadsheet format.
Provide complete and accurate employee details, including Tax File Number (TFN), full legal name, date of birth, and postal address.
Ensure the ABN and TFN on the statement match your business details.
Have your Payment Reference Number (PRN) ready to make the SGC payment.
Need Help? The ATO Can Work With You
The ATO understands that businesses can face pressures. If you are behind or at risk of falling behind with your SG obligations, contact them as soon as possible. While they cannot extend the SG due date, they can work with you to develop a plan to get back on track.
You can also use the ATO’s super guarantee contributions calculator or speak with your registered tax practitioner for assistance.
Bottom Line: Meeting your super obligations is non-negotiable. Proactively addressing any missed payments by the 28 November deadline is crucial to minimise penalties and fulfil your duty to your employees’ financial futures.
If you need support navigating your SG obligations or completing an SGC statement, our team is here to help ensure your compliance.
Disclaimer: Any advice on this site is general nature only and has not been tailored to your personal objectives, financial situation and needs. Please seek personal advice prior to acting on this information. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.
