As a director, you are legally responsible for ensuring your company meets its superannuation guarantee obligations. Lodging Super Guarantee Charge statements with the ATO where necessary is also one of these obligations.
Many employers confuse the Super Guarantee (SG) with the Super Guarantee Charge (SGC). They are different!!!
What is the difference between SG and SGC?
The Super Guarantee (SG) is the regular compulsory contribution that an employer must make to its employee’s superfunds. From 1 July 2023, the minimum SG rate is 11% and this is set to increase to 11.5% from 1 July 2024 and to 12% from 1 July 2025 onwards.
The Super Guarantee Charge (SGC) is the penalty imposed by the ATO if the correct amount of super isn’t paid on time to the employees’ superfunds.
Quarterly due dates for SG obligations are as follows:
|
Quarter |
Period |
Due Date |
|
1 |
1 July – 30 September |
28 October (each year) |
|
2 |
1 Oct – 31 December |
28 January (each year) |
|
3 |
1 Jan – 31 March |
28 April (each year) |
|
4 |
1 Apr – 30 June |
28 July (each year) |
What do I do if I am late?
First thing first, you should pay the outstanding super as soon as possible. Then you’ll have to lodge an SGC statement with the ATO by the due date.
What is an SGC statement and when is it due?
It is a document that employers must complete and lodge with the ATO if they fail to make correct amount of contributions to their employers’ superfunds on time. It is due on the 28 th day of the
following month after the SG is due. For example, SG contributions for September quarter must be paid by 28 October and if they aren’t paid by this date, SGC statements must be lodged by 28 November.
How much is the SGC?
The penalty is calculated based on how much you owe and it includes the shortfall amount (the contributions not paid or paid late), interest (currently 10% per annum) and admin fee ($20 per
employee, per quarter).
Please be aware that the SGC payment (including late super paid) is not tax deductible.
What are the penalties for not lodging an SGC statement?
The maximum penalty for failing to lodge an SGC statement on time is 200% of the SGC amount.
Additionally, directors can be held personally liable for the penalties.
Useful link:
SGC statement form
https://www.ato.gov.au/Forms/Super-guarantee-charge-(SGC)-statement/#Gettheform
Author
May Aung
