12 September 2024
Making Superannuation Guarantee (SG) payments on time isn’t just important for your employees, it’s important for your business. If your SG payments are late, you must undertake a specific process to correct the situation, which can impact both you, as the employer and your employees.
When to pay SG
Currently, employers need to ensure SG payments are received by their employees’ super funds, four times a year by the below dates:
| Asset Class | Range | Allocation |
|---|---|---|
| 1 | 1 July–30 September | 28 October |
| 2 | 1 October–31 December | 28 January |
| 3 | 1 January–31 March | 28 April |
| 4 | 1 April–30 June | 28 July |
Your employee’s super contribution is only considered ‘paid’ on the date it’s received by the super fund, not the date it’s received by the clearing house1.
Late payments
If you miss the quarterly payment due date, you’re required to submit a Superannuation Guarantee Charge (SGC) statement to the Australian Taxation Office (ATO) and pay the SGC, which is made up of:
- the unpaid SG amount
- interest on the outstanding amount (currently 10%), and
- an administrative fee.
The SGC is not tax-deductible, unlike regular SG contributions, which can be claimed as a tax deduction if paid on time.
When to pay SGC
If you miss this deadline to make SG payments, you’ll need to calculate the SGC and lodge an SGC statement by the following dates:
| Quarter | Period | Payment Due Date | SGC Due Date |
|---|---|---|---|
| 1 | 1 July–30 September | 28 October | 28 November |
| 2 | 1 October–31 December | 28 January | 28 February |
| 3 | 1 January–31 March | 28 April | 28 May |
| 4 | 1 April–30 June | 28 July | 28 August |
If you’re unable to meet these deadlines, you can receive additional penalties and charges. The ATO may also impose a General Interest Charge on any outstanding SGC amounts until they’re fully paid.
How to lodge your SGC statement
There are three options for lodging your statement:
- Use the SGC calculator in Online services for business or Online services for individuals. This will help you work out how much you owe and generate your statement online
- Fill in the SGC statement spreadsheet and lodge it using Online services for business or Online services for individuals. You can download the spreadsheet from the ATO website, and
- Use the SGC statement and calculator tool to create a PDF version of your statement. You can print this and send it to the ATO by mail.
What is the impact
Making regular SG payments to your employees is required by law and paying on time is crucial to avoiding extra costs and penalties.
While interest accrued from the SGC is paid into your employee’s nominated fund to compensate for the late payment, it may not fully cover the lost earnings opportunity.
Regularly reviewing payroll processes and ensuring compliance with the SG requirements is essential for maintaining a responsible and supportive workplace for your employees.
This is not professional advice. Employers should seek professional advice that meets their own needs and addresses their own obligations and specific circumstances. AustralianSuper doesn’t take responsibility for any action an employer may take as a result of receiving this communication.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.