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  • The super guarantee charge (SGC)

    If you don't pay the minimum amount of super guarantee (SG) for your employee into the correct fund by the due date – you may have to pay the super guarantee charge (SGC).

    The charge is made up of:

    • SG shortfall amounts (including any 'choice liability') calculated on your employee’s salary or wages
    • interest on those amounts (currently 10%)
    • an administration fee ($20 per employee, per quarter).

    You report and rectify the missed payment by lodging an SGC statement by the due date and paying the SGC to us.

    You may be able to use a late payment to reduce the amount of SGC you must pay. You must still lodge an SGC statement and pay the balance of the SGC to us.

    Our collection approach to unpaid SGC

    We prioritise the collection of unpaid SGC debts. We'll work with you to address outstanding amounts – if you don't engage with us we'll take stronger action.

    This can include:

    If an employee reports you for unpaid super we'll start an investigation on their behalf. We'll keep them informed of the investigation and the progress of our debt recovery actions.

    See also:

    Working out the charge and preparing the statement

    You can:

    Payment dates

    You must lodge your SGC statement and pay the charge by the due date.



    Due date


    1 July – 30 September

    28 November


    1 October – 31 December

    28 February


    1 January – 31 March

    28 May


    1 April – 30 June

    28 August

    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, we transfer the super guarantee shortfall amount and any interest to your employee's chosen super fund.

    Extension of time

    If you know you're going to miss the due date for lodging an SGC statement, you can ask us for an extension of time to lodge. You can also ask for an extension of time to pay.

    You must make the request before the due date, in writing, stating why you need an extension. The nominal interest will continue to accrue until you lodge. The general interest charge (GIC) will then apply from the deferred payment time as varied until the SGC is paid in full.


    These three examples are based on an employer with 30 employees. During the quarters shown in the examples, each employee earned $12,500 in total salary and wages.

    However, for each employee $2,500 of their total salary and wages was for paid overtime. So each employee’s ordinary time earnings (OTE) for the quarter was $10,000.

    Example: Employer pays SG correctly

    In the quarter from 1 July to 30 September 2014 the employer pays SG on the OTE of all employees for the quarter:

    OTE (for 30 employees): $300,000

    SG = OTE × 9.5%

    = 300,000 × 9.5%

    = $28,500

    The employer pays the $28,500 on time into the employees' super fund accounts. The $28,500 is income tax-deductible for the business.

    End of example


    Example: Employer pays no SG

    In the quarter from 1 July to 30 September 2009 (when SG was 9%), the employer does not pay any SG contributions. As a result of an employee enquiry about their unpaid super, we audit the employer for the September 2009 quarter. This occurs several years later and is completed on 5 August 2013.

    We calculate the employer's SGC liability on the full salary and wage amount (not just OTE), and each employee receives nominal interest of 10% on that amount, calculated from the start of the quarter the SG wasn't paid.

    Total salary and wages (for 30 employees): $375,000

    Total SG shortfall:

    $33,750 ($375,000 × 9%)

    Total choice liabilities:


    Nominal interest:


    Administration fee:


    Total SGC:



    • the general interest charge (GIC) will accrue until the SGC is fully paid
    • a penalty may be imposed on the employer for failing to provide an SGC statement or information relevant to assessing their liability.

    As a result of all this, the employer has incurred more than $21,000 in additional, non-deductible costs.

    End of example


    Example: Employer doesn't pay SG but lodges an SGC statement

    The employer lodges an SGC statement on 5 December 2009, shortly after the due date for the quarter (28 November).

    SGC is calculated on the full salary and wage amount and includes nominal interest on that amount (10%) from the start of the quarter the SG wasn't paid:

    Total SG shortfall:

    $33,750 ($375,000 × 9%)

    Total choice liabilities:


    Nominal interest:


    Administration fee:


    Total SGC:



    End of example

    See also:

    Last modified: 24 May 2018QC 33743