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How does the super guarantee charge work?

Employers who do not pay the minimum amount of super guarantee for their employee(s) by the due date may have to pay the super guarantee charge (SGC).

The charge is made up of super guarantee shortfall amounts including any choice liability calculated on your employee’s salary or wages, interest on those amounts (currently 10 per cent) and an administration fee ($20 per employee, per quarter).

Employers must report and rectify the missing payment by lodging an SGC statement by the due date and paying the SGC to the ATO. Employers may be able to use a late payment to reduce the amount of SGC, however, they must still lodge an SGC statement and pay the balance of the SGC to the ATO.

The ATO prioritises the collection of unpaid SGC debts. If an employee reports an employer for unpaid super, the ATO will investigate on their behalf.

Employers must lodge their SGC statement and pay the charge by the due date.

Quarter Period Due date
1 1 July – 30 September 28 November
2 1 October – 31 December 28 February
3 1 January – 31 March 28 May
4 1 April – 30 June 28 August

If a due date falls on a weekend or public holiday, the payment can be made the next working day.

Once the statement has been lodged and the SGC is paid, the ATO will transfer the super guarantee shortfall amount and any interest to the employee’s chosen super fund.

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  • Super co-contributions

    October 18, 2017

    Individuals may be eligible for a Government super co-contribution.

    A Government co-contribution means the Government adds to your super. You may be eligible for the super co-contribution, low-income super contribution (LISC) from the 2012-13 to 2016-17 financial years, or low-income super tax offset (LISTO) from 1 July 2017.

    Super co-contribution
    The Government will make a co-contribution of up to $500 if you are a low or middle-income earner and make personal (after-tax) contributions to your fund.

    The eligibility conditions for a co-contribution from the 2017-18 financial year include:
    a total superannuation balance less than the general transfer balance cap for that year
    the contribution you made to your super fund must not exceed your non-concessional contributions cap for that year.

    Low-income super contribution
    The low-income super contribution (LISC) is a Government super payment of up to $500 to help low-income earners save for retirement.

    If you earn $37,000 or less a year, you may be eligible to receive a LISC payment directly into your super fund.

    The LISC is 15 per cent of before-tax super contributions made you or your employer from the 2012-13 to 2016-17 financial years.

    If you have reached your ‘preservation age’ and are retired you can apply to have your LISC paid directly to you.

    Low-income super tax offset
    The low-income tax offset (LISTO) was introduced from 1 July 2017. If you earn income up to $37,000, you may be eligible to receive a refund into your super account. This is on the tax paid on your concessional super contributions up to a cap of $500.

    This means most low-income earners will pay no tax on their super contributions.