Superannuation Guarantee Charge (SGC) Overview:
When an employer fails to meet their Superannuation Guarantee (SG) obligations for a quarter, they must pay the SGC and lodge an SGC statement by the 28th day of the second month after the quarter ends.
Components of SGC:
-
Total Individual SG Shortfalls: The sum of SG shortfalls for each underpaid employee, calculated based on their salary or wage base and shortfall percentage for the quarter.
-
Choice Shortfall: Penalty for not meeting choice of fund obligations, limited to $500 per employee per notice period.
-
Nominal Interest Component: Additional amount (currently 10% p.a.) to compensate for delayed SG contributions, calculated from the beginning of the quarter.
-
Administration Component: Fixed $20 per employee per quarter.
Penalties:
- Part 7 Penalty: Additional penalty for late SGC statement lodgment, up to 200% of the SGC payable.
- Administrative Penalty: General penalty for underpaid SGC due to false statements or default assessment, up to 75% of the SG shortfall.
Other Consequences:
- Loss of Deduction: SGC and late contribution offsets are not tax-deductible.
- General Interest Charge: Accrued on late SGC payments, excluding nominal interest and administration components.
Director Penalty Regime:
For SGC liabilities from June 2012 onwards, directors become personally liable if the company fails to pay the SGC in full by its due date.
For further assistance, you can reach out to Tax Ideas Accountants & Advisers at
+61 2 83181545 or book an appointment via live calendar.
- Superannuation Guarantee Amnesty (1) – Employers’ Obligations
- Superannuation Guarantee Amnesty (3) – Eligibility for The SG Amnesty
- Superannuation Guarantee Amnesty (4) – Benefits from The SG Amnesty
- Superannuation Guarantee Amnesty (5) – Increased Minimum Penalty for Employers Ignore the SG amnesty
- Superannuation Guarantee Amnesty (6) – Contributions Made Under the SG Amnesty (1)
- Superannuation Guarantee Amnesty (7) – Contributions Made Under the SG Amnesty (2)
