Super Guarantee Charge

The ATO and superannuation funds have improved their detection of late super guaranteed payments as a result of the Single Touch Payroll (STP) reporting services which became mandatory for most employers.

Harsh penalties may be imposed on employers by the ATO for failure to meet their quarterly superannuation guarantee (SG) obligations on time.

Employers who have missed their employees’ super payments are required to pay a Superannuation Guarantee Charge (SGC), which is then not tax-deductible.  The SGC is calculated as the sum of:

● The shortfall amount – which is calculated on employees’ salary and wages, rather than their ordinary time earnings (OTE)

● A nominal interest component (currently 10% per annum) of the shortfall amount from the beginning of the quarter in which the contribution was required to be made until the lodgment of an SGC statement; and

● A $20 administration fee per employee, per quarter.

Please be advised the due date for payment of the Super Guarantee Charge and lodging the statement is one calendar month after the super guarantee due date. This is shown in the table below.