Superannuation Guarantee (Administration) Act 1992

[ CCH Note: Pt 7 will be substituted by No 57 of 2025, s 3 and Sch 1 item 16, effective 1 July 2026. For application and transitional provisions, see note under s 16 . Pt 7 will read:

PART 7 - PENALTY FOR LATE OR NON-PAYMENT OF SUPERANNUATION GUARANTEE CHARGE

SECTION 59 SIMPLIFIED OUTLINE OF THIS PART  
59

The Commissioner must issue an employer a notice to pay an amount of superannuation guarantee charge if the charge remains unpaid 28 days after the charge became payable.

The employer may become liable to an administrative penalty if the employer does not comply with the notice.

SECTION 59A NOTICE TO PAY UNPAID SUPERANNUATION GUARANTEE CHARGE  

59A(1)
This section applies if superannuation guarantee charge payable by an employer is unpaid on the day (the current notice trigger day ) that is the day after the end of the 28-day period that started on the day (the imposition day ) the charge became payable.

Note:

The superannuation guarantee charge could be:

(a) charge assessed and payable under section 36 ; or

(b) charge in the form of general interest charge payable under section 49 .

59A(2)
The Commissioner must, as soon as practicable after the current notice trigger day, give the employer a written notice (the current notice ) requiring the employer to pay a specified amount of superannuation guarantee charge if:

(a) at least some of the specified amount is the amount referred to in subsection (1) ; and

(b) the remainder (if any) of the specified amount is charge payable by the employer that is unpaid on the current notice trigger day; and

(c) the specified amount exceeds $ 30 or any higher amount prescribed by the regulations; and

(d) the employer has not been given an earlier notice under this subsection during the 50-day period ending on the day before the current notice trigger day; and

(e) no part of the specified amount has been included in any earlier notice under this subsection.

Note 1:

As well as including the amount referred to in subsection (1) , the amount specified in the current notice could also include:

(a) any (other) unpaid general interest charge that has accrued under section 49 since the employer was given the last notice under this subsection; and

(b) any (other) unpaid charge that has been assessed under section 36 since the start of the 50-day period mentioned in paragraph (d) .

Note 2:

The employer remains liable to pay the amounts making up the specified amount. The notice does not create a separate liability to pay the specified amount. However, a failure to comply with the notice may result in an administrative penalty under section 59C .

59A(3)
The Commissioner must ensure that the current notice includes words to the effect that an administrative penalty will arise if the employer fails to pay the specified amount during the period (the current notice payment period ):

(a) starting on the day specified in the notice (which must be on or after the current notice trigger day); and

(b) ending on the 28th day after the day specified in the notice.

SECTION 59B CONSEQUENCES IF A LIABILITY TO PAY ALL OR PART OF THE SPECIFIED AMOUNT IS REDUCED OR CEASES TO EXIST  

59B(1)
If:

(a) the current notice payment period has not expired; and

(b) a liability under this Act to pay any of the amounts making up the specified amount is reduced (but not to nil);

treat the specified amount in the current notice as if it were reduced by the amount of the reduction referred to in paragraph (b) .

59B(2)
If:

(a) the current notice payment period has not expired; and

(b) each liability under this Act to pay an amount making up the specified amount either:

(i) is reduced to nil; or

(ii) ceases to exist;

treat the current notice as if it were revoked.

SECTION 59C PENALTY FOR FAILING TO PAY UNPAID SUPERANNUATION GUARANTEE CHARGE SPECIFIED IN THE NOTICE  

59C(1)
The employer is liable to pay a penalty if the employer fails to pay the amount specified in the current notice during the current notice payment period.

59C(2)
The amount of the penalty is equal to a percentage of so much of the specified amount as remains unpaid at the end of the current notice payment period. The percentage is as follows:

Percentage used to work out the amount of the penalty
Item	If:	the percentage is:
1	a determination is made under subsection 18C(4) covering the employer for any part of the period: (a) starting on the imposition day (see subsection 59A(1) ); and (b) ending on the last day of the current notice payment period	0%.
2	(a) item 1 does not apply; and (b) the employer has become liable under subsection (1) for a penalty that is greater than nil for an earlier notice during the 24-month period ending on the day after the end of the current notice payment period	50%.
3	neither item 1 nor 2 applies	25%.

Note:

Determinations under subsection 18C(4) cover employers affected by exceptional circumstances. The determination may cover an employer for a period starting before the determination is made.

SECTION 59D ASSESSMENT AND NOTIFICATION OF LIABILITY TO PAY THE PENALTY  

59D(1)
The Commissioner must make an assessment (a penalty assessment ) of the amount of an administrative penalty payable under section 59C by the employer.

59D(2)
The Commissioner must give written notice to the employer of the penalty assessment, unless the penalty assessment is nil.

59D(3)
The penalty becomes due for payment on the day specified in the notice, which must be at least 14 days after the day the notice is given to the employer.

Note 1:

For provisions about collection and recovery of the penalty, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .

Note 2:

General interest charge does not accrue on any late payment of the penalty.

59D(4)
If the employer is dissatisfied with the penalty assessment, the employer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

SECTION 59E AMENDING PENALTY ASSESSMENTS  

59E(1)
The Commissioner must not remit all or a part of the penalty set out in a penalty assessment.

59E(2)
However, the Commissioner must amend a penalty assessment if:

(a) a liability under this Act to pay an amount relevant to the penalty assessment is reduced (including to nil) or ceases to exist; or

(b) the amount of the penalty set out in the penalty assessment is reduced to nil because of a determination made under subsection 18C(4) .

Note:

A determination under subsection 18C(4) may cover an employer for a period starting before the determination is made.

59E(3)
The amount of penalty payable under the amended penalty assessment is to be worked out in a manner consistent with subsection 59C(2) .