What is the super guarantee charge?

There are many things to remember when paying superannuation for your employees, but knowing the difference between a super guarantee (SG) and the SG charge may just be the most important.

The SG charge is an additional amount you’d need to lodge and pay to the ATO if you didn’t pay your employees’ super:

  • on time by the quarterly due date
  • at the new rate of 10%, or
  • to the right fund (e.g. employee’s chosen fund).

If any of the above applies to you for quarterly super payments due on 28 January, your organisation must lodge a Super guarantee charge statement online by 28 February and pay the SG charge to the ATO. By doing this, you will avoid significant penalties.

The way you calculate the SG charge is also different from how much SG you pay to your employees’ funds. The SG charge is calculated on an employee’s total salary and wages (including overtime and some allowances) and includes interest and an administration fee of $20 per employee, per quarter.

If you’re worried you’ll have difficulty paying the SG charge, contact us so we can work with you to find a solution tailored to your situation.

Source: ATO

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About the Author: David McKeller

David McKellar is a Chartered Accountant and Director of Allied Business Accountants, an accounting firm specialising in providing strategic advice and taxation services to business owners, investors and Self Managed Superannuation Funds.

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