Question 1

What is the Super Guarantee Charge (SGC)?

Accepted Answer

The SGC is the penalty employers pay when they fail to pay the minimum super guarantee for their employees on time. It includes the SG shortfall amount (calculated on total salary and wages, not OTE), nominal interest of 10% per annum from the start of the quarter, and a $20 administration fee per employee per quarter.

Question 2

Is the SGC tax-deductible?

Accepted Answer

No. Unlike normal SG contributions which are tax-deductible, the SGC is NOT tax-deductible. This makes late payment significantly more expensive than paying on time.

Question 3

What happens if I don't lodge an SGC statement?

Accepted Answer

If you don't lodge an SGC statement before ATO audit action starts, a Part 7 penalty of up to 200% of the SGC may apply. It is always better to self-report and lodge the statement voluntarily.

Question 4

When does Payday Super start?

Accepted Answer

From 1 July 2026, employers must ensure super contributions are received by employees' funds within 7 business days of each payday, replacing the current quarterly system.

Super Guarantee Charge (SGC) Calculator

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