The Australian Tax Office (ATO) is becoming stricter in auditing superannuation guarantee payments that were made by employers. Quarterly mandatory 9.5% superannuation contributions must be made by the 28 day following the end of the quarter. If an employer misses a payment or hasn’t paid an employee’s superannuation on time, it is required to lodge a superannuation guarantee charge (SCG) statement and pay the superannuation guarantee charge. This includes the application of the mandatory administration component of $20 per employee per period to SGC statements lodged.
The charge is made up of:
- SGC shortfall amounts (including any choice liability calculated on your employee’s salary or wages;
- Interest on those amounts (currently 10%); and
- An administration fee of $20 per employee, per quarter.
The employer should report and rectify the missed payment by lodging an SGC statement by the due date and pay the SGC to the Australian Tax Office.
If the payments were late, the late payment may be used either to offset the SGC or to carry forward as pre-payment of a future contribution for the same employee.
When an SGC statement is required, it can be downloaded from the ATO website. The spread sheet will not automatically calculate the SGC shortfall, but will calculate the nominal interest component up until the date the form is completed. The SGC statement must be lodged and paid by the due date. If the quarterly superannuation obligation is not met on time, SGC payments will be due.
SGC payment schedule
| Quarter | Period | 9.5% Superannuation | SGC Payment |
| 1 | 1 July – 30 September | 28-Oct | 28-Nov |
| 2 | 1 October – 31 December | 28-Jan | 28-Feb |
| 3 | 1 January – 31 March | 28-Apr | 28-May |
| 4 | 1 April – 30 June | 28-Jul | 28-Aug |
When a due date for payment falls on a weekend or public holiday, you can make the payment on the next working day.
Once you lodge a statement and pay the SGC, the ATO transfer the super guarantee shortfall amount and any interest to your employee’s chosen super fund. Superannuation guarantee charges are not tax – deductible.
If an employee reports unpaid super, the ATO will include an investigation on their behalf. If it is determined that superannuation guarantee payments have not been met the ATO may disclose to all affected employees including former employees any SGC shortfall as it relates to them.
Need help?
If you pay your employees superannuation late or require further assistance please contact our team of experienced tax accountants and lawyers by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange a teleconference or appointment.
