Super Guarantee and the Super Guarantee Charge
What’s the difference between Super Guarantee (SG) and the Super Guarantee Charge (SGC)?
Super Guarantee is the compulsory employer contribution to your employee’s superfunds. When the SG is not paid on time, or by the due dates, you are required to advise the ATO and pay the SGC.
The expansion of Single Touch Payroll (STP) makes it easier for the ATO to see what kinds of income is being paid and when. It is likely that future STP phases will also include super guarantee payments.
The super guarantee change is made up of:
- The Super Guarantee Shortfall amount
- Interest of 10% per annum, accrued from the start of the relevant quarter until the payment of the SGC is made.
- An administration fee of $20 per employee, per quarter.
If you are late to pay an employee’s super, or fail to pay the correct amount, you will need to complete a super guarantee charge statement and send it to the ATO via their online services. The SGC statement is due one month after the SG payment date.
| Quarter | SG payment due date | SG charge 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 |
What should I do?
If you’re using an accounting package such as Xero, superannuation payments can be automated using the payroll feature. If you are unsure of how this feature works, please reach out to our friendly team who will be happy to assist you with the set-up and training.
It’s a good idea to run superannuation payments shortly after the relevant quarter has ended, to ensure it is received by the superfund and eligible to claim as a business deduction.
If you have any questions or would like to learn more about the SGC, please contact us at 8333 7300.