The Super Guarantee Charge (SGC)

The SGC is a penalty charge that applies to employers who don’t pay the minimum amount of super guarantee (SG) for their employees to the correct fund by the relevant due date.

The current percentage of the super guarantee contribution is 11% of gross wages. From 1 July 2024 to 30 June 2025, the super guarantee will increase to 11.5%.

Contributions paid by employers are required to be paid every quarter at a minimum but employer contributions can be paid more frequently (e.g: monthly) if the employer chooses to.

The quarterly due dates are below:

To avoid the super guarantee charge (SGC), you must pay super for eligible employees and pay before the contribution due date.

If you have missed the quarterly payment due date or made a late payment, you will need to lodge an SGC statement and pay the SGC to the ATO.

Clearing Houses

A clearing house distributes your super contributions to your employees’ funds on your behalf.

It is important that you allow enough time for your SG payment to reach the super fund and allow for their processing timeframes.

Some clearing houses charge a fee for the service of distributing payment to other funds. The ATO super clearing house service is free.

If you use the ATO’s Small Business Superannuation Clearing House, payments may be considered ‘paid’ on the date they have been received.

Be aware of the due date, check the processing timeframes for SG contributions and ensure your payments will be processed before the payment due date.

For more information on the due dates, please click here. 

Missed and late super guarantee payments

What happens if an employer doesn’t pay an employee’s super guarantee in full, on time, or to the right fund?

If the employer doesn’t pay on time or to the right fund before the due date, they must lodge a superannuation guarantee charge (SGC) statement and pay the super guarantee charge to the ATO.

If you are having difficulties paying the super guarantee, please call the ATO on 13 10 20 to discuss your circumstances.

The ATO can help you complete an SGC statement and work out a payment plan if you are unable to pay on time. They also provide an online Super Guarantee Employer Obligations course.

For more information, please click here.

Disclaimer

This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.