Should you fail to pay your employees’ super guarantee amount (currently 11%) in full, by the due date and to the right fund, you must pay the Super Guarantee Charge (SGC) and lodge an SGC statement with the ATO. The SGC charge is made up of the following:
- The super guarantee is calculated on salary and wages (including any overtime),
- Interest of 10% per annum, which accrues from the start of the relevant quarter, and
- An administration fee of $20 per employee, per quarter.
The SGC paid is not tax-deductible, and it must be emphasised that – even if the super is paid in full – if you pay after the due date you must still lodge the SGC forms; with interest accruing from the start of the quarter. Any payments made come off the total amount after the SGC has been calculated.
Superannuation Guarantee payment due dates are as follows:
Following the introduction of SuperStream a few years ago, the ATO has had far more data available at its fingertips, permitting it to easily follow up on late super payments. We have seen this unfold already this year.
We recommend that you pay super at the same time as you pay runs. This is not as onerous a process as it used to be, particularly if you have the right software such as Xero or MYOB. Paying super regularly assists with cash flow and keeping things prompt. This practice will also prepare you for ‘Payday Superannuation’ – where employers will be required to pay their employees super and wages simultaneously – which will be required from July 1, 2026.
