Super Guarantee Charge

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What is the Super Guarantee Charge?

What’s the difference between SG payments and the SG Charge?

Many employers confuse the Super Guarantee (SG) with the Super Guarantee Charge. They are different.

The Super Guarantee (SG) is the regular compulsory employer contribution to its employees’ super funds. From 1 July 2023 the SG rate is a minimum of 11% of OTE earnings for most employees. This is gradually rising to 12% by 1 July 2025.

The Super Guarantee Charge is the penalty imposed by the ATO if the correct super isn’t paid on time. The Super Guarantee Charge Statement is an ATO form for use if the correct super isn’t paid on time.

How much is the Super Guarantee Charge?

The fine, or penalty, for late super is called the Superannuation Guarantee Charge and is calculated based on how much you owe. It includes:

  • the shortfall amount (the contributions not paid or paid late),
  • interest of 10% per annum, and
  • an administration fee.

The SG Charge is based on the employee’s salary and wages, which may be greater than their OTE.

Are the payment dates the same?

No. The quarterly payment dates for regular super and the Super Guarantee Charge are different. Usually the deadline for the SG Charge is one month after the quarterly due date for the regular Super Guarantee payments.

What do I do if I am late?

The first thing to do is pay outstanding super as soon as possible. Then, you’ll need to notify the ATO via a Super Guarantee Charge Statement, and the ATO will work out your Super Guarantee Charge.

Is the Super Guarantee Charge tax deductible?

No. The Super Guarantee Charge is not tax deductible. What’s more, directors of companies can be held personally liable for the penalties.

How can I avoid the Super Guarantee Charge in the future?

Have a chat to our specialists at TWUSUPER by calling 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays or see our Account Managers page to get in touch with your state account manager. We know that super errors can happen and we’re happy to help you sort out your super systems so it all happens more easily.

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