The superannuation guarantee charge liability is imposed under the superannuation guarantee legislation
Employers may become liable to pay the superannuation guarantee charge (the sgc) if they fail to pay their superannuation guarantee amounts (sga) in a timely fashion. The charge itself is extremely penal and should be avoided at almost any cost.
Applies to employers and contractors (?)
Contractors who engage sub-contractors under certain conditions, such as –
- when, where, and how their contracts are to be performed, and
- in a way that might be seen as workplace environmental control,
may find themselves included under the definition of ‘Employers’ for purposes of this legislation.
The SGC arises …
The superannuation guarantee charge liability can crystallise in the following circumstances (and this list may not be exhaustive):
- if sga payment obligations are not met within 28 days of the end of the quarter in which they become payable;
- failure to meet ‘Choice of Super’ obligations in a timely way; and
- underpayment of sga/ superannuation obligations within prescribed timeframes.
It is our understanding that the superannuation guarantee charge liability may be imposed even if the superannuation guarantee amount has been paid in full, but late. For details of the charge and how it will be calculated by the ATO, search their website.
Consult your business adviser or tax accountant as to where you stand in this regard if you have any concerns.
How we can help with superannuation
Continuum Financial Planners Pty Ltd offers a range of services in relation to Superannuation, including –
- advice to employers on the establishment of default superannuation arrangements compliant with Awards and other regulations,
- personal superannuation, and
- self-managed superannuation.
Our team of experienced, professional advisers is available to assist you determine and implement the superannuation strategy that is in your best interest. To arrange a meeting with one of our team, please –
- phone our office, on 3421 3456; or
- at your convenience, use the linked Book A Meeting facility.
(This article was originally posted by us, in September 2008. It has occasionally been updated/ refreshed, most recently in May 2025.)
