Employers affected by disaster
We understand people and businesses affected by disasters may have difficulty in meeting super obligations. We make every effort to help employers who have been impacted by disasters.
If you can't make your super contributions for a quarter, you may need to lodge a Superannuation guarantee charge statement - quarterly.
The law requires employers lodge an SGC statement if they fail to make the required amount of super contributions to a fund by the end of the contribution cut-off date. However, we will most likely view employers impacted by natural disaster as low-risk and we are unlikely to check their current compliance if outstanding payments are rectified in a timely manner.
When you are ready to do so, pay the outstanding contributions directly into your employees’ super accounts. You should also consider making an additional payment into the employees’ super fund accounts as compensation for lost earnings on that super contribution from the due date for payment up to the date payment is actually made. The compensation should reflect the amount of interest similar to that which the employees could reasonably expect to have received if the super contributions had been made to the fund by the due date. As a guide, the SGC nominal interest rate is 10%.
If you chose to lodge a statement, we recommend that you lodge it as soon as possible, as nominal interest (currently 10%) accrues on shortfall contributions and only stops accruing once the statement is lodged. The interest is paid to the employee to compensate for lost earnings. We have no discretionary powers to waive it.
We won't impose other usual penalties, and will consider remitting any general interest charge at the time the super guarantee debt is paid.
Calculating SG contributions if your records are lost or damaged
If your records are lost or damaged in a disaster, we recommend you make an estimate of super guarantee contributions using old records. You might get them from:
- your employees
- your bank
- the super funds you pay contributions to
- records of PAYG payments you've made (which we hold).
You should discuss how you are going to make this estimate with your employees, both because they might be able to help with records and because they should understand how you're calculating their super payments.
If you're winding up your business as a result of a disaster, you'll still need to pay your outstanding super obligations for your employees before you finish up. We recommend that you lodge a Superannuation guarantee charge statement – quarterly as soon as possible.
We make every effort to help employers who have been caught up in disasters. If you cannot make your super contributions for a quarter, lodge a superannuation guarantee charge statement as soon as possible, as nominal interest (currently 10%) accrues on contribution shortfalls. It only stops accruing once the statement is lodged. As the interest is paid to the employee to compensate for lost earnings, we have no discretionary powers to waive it (as we have with income tax).