‍Understanding the Super Guarantee Charge (SGC) Statement: A Complete Guide for Employers

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Introduction
The Superannuation Guarantee (SG) system in Australia ensures that employees receive compulsory contributions from their employers into their chosen superannuation fund. But when employers fall behind or miss payment deadlines, they become liable for the Super Guarantee Charge (SGC).

This charge is more than just a penalty—it includes interest, administration fees, and can result in audits and increased ATO scrutiny. To rectify non-compliance, employers must submit an SGC Statement to the Australian Taxation Office (ATO). In this comprehensive guide, Trinity Accounting Practice outlines everything employers need to know about the SGC Statement, how to complete and lodge it, and how to avoid it in the future.

1. What Is the Super Guarantee Charge (SGC)?

The SGC is a penalty applied when employers don’t pay the minimum 11% super guarantee contributions by the quarterly due dates. These due dates are strict, and even a one-day delay can trigger the charge.

The SGC includes:

• Super shortfall: The amount of SG not paid or underpaid
• Nominal interest: 10% per annum from the start of the quarter to the date of lodgment
• Administration fee: $20 per employee per quarter

Key consequences:

• The SGC is not tax deductible
• You may be subject to penalties and audit action
• Repeated non-compliance may result in director penalty notices

2. Who Must Lodge an SGC Statement?

Any employer who fails to:

• Pay SG contributions in full
• Pay by the quarterly due dates
• Pay to the correct fund (or fails to meet choice obligations)

…must complete and lodge an SGC Statement with the ATO.

Even if you have since paid the SG contributions late, you must still lodge the SGC Statement and may be eligible for a Late Payment Offset (LPO).

3. Quarterly Due Dates for SG Contributions

To avoid SGC, employers must pay super by the following dates:

QuarterSG Due DateSGC Statement Due1 July – 30 Sept28 October28 November1 Oct – 31 Dec28 January28 February1 Jan – 31 Mar28 April28 May1 Apr – 30 Jun28 July28 August

Late payments—even by one day—require you to lodge an SGC statement.

4. How to Download and Use the SGC Statement Form

The SGC Statement is available as an Excel spreadsheet and must be completed as provided.

Steps to access:

1. Visit ATO SGC Statement
2. Download the latest Excel template (.xls format)
3. Do not modify the template structure—avoid adding/removing columns or rows incorrectly

Key sections:

• Employer Details: Include your ABN, contact info, lodgment and payment dates
• Employee Details: Full names, TFNs, dates of birth, addresses
• Shortfall Amounts: For each quarter and each employee
• Late Payment Offset (LPO): For any late payments made before lodging
• Totals Tab: Automatically calculates amounts owed

5. Lodging the SGC Statement

You can lodge the form through the ATO's online services:

Steps to lodge via Business Portal:

1. Log into Online Services for Business
2. Go to Communication > Secure Mail
3. Select Superannuation > Lodge SGC Statement
4. Attach your completed .xls file only (PDFs or ZIPs will be rejected)

Alternatively, call the ATO on 13 10 20 to discuss paper lodgment options if you cannot access online services.

6. Making an SGC Payment

You must use your Payment Reference Number (PRN) to make payment. Find this in:

• ATO correspondence
• Online services
• Call the ATO if unsure

Payment methods:

• BPAY
• Direct credit
• ATO online payment portals

Note: Even if you cannot pay immediately, you must still lodge. The ATO can set up a payment plan to avoid further penalties.

7. Late Payment Offset (LPO)

If you paid the SG contributions late but before lodging the SGC statement, you may qualify for the Late Payment Offset, reducing your overall SGC liability.

To claim the LPO:

• Include payment dates and amounts on the form
• Payments must have been made to the correct fund

8. Common Mistakes to Avoid

Avoid these errors to ensure proper processing:

• Not using the latest .xls ATO template
• Claiming LPO incorrectly
• Attaching the wrong file type (PDFs, ZIPs not accepted)
• Failing to include all employee details
• Not lodging the SGC even after late payment
• Assuming a payment extension waives the need to lodge

9. Real-World Example: How We Helped a Client Avoid $6,000 in Fines

A Sydney construction company missed their SG payment by 3 days. They hadn’t realised that this triggered the SGC. Our team at Trinity:

• Reviewed their payroll and calculated the shortfall
• Completed and lodged the SGC Statement within 14 days
• Claimed the Late Payment Offset
• Set up a payment arrangement with the ATO

Result: The company avoided penalties exceeding $6,000 and retained ATO goodwill by being proactive.

10. Preventing SGC in the Future

We help clients set up systems that ensure SG is paid on time, every time:

• Payroll automation with Xero or MYOB
• Quarterly compliance reviews
• SMS and email reminders
• Bookkeeping and payroll services
• Super clearing house integrations

11. Penalties for Non-Compliance

Failing to lodge or pay can result in:

• General interest charge (GIC) accrual
• Additional penalties (up to 200%)
• Director Penalty Notices for company directors
• Audit and compliance action

Lodging and cooperating early is critical to reducing penalties.

12. How Trinity Accounting Practice Can Help

We provide full support for employers needing to manage SG obligations or correct errors:

• SGC Statement preparation and lodgment
• Payroll compliance checks
• SG payment automation
• Negotiating with the ATO
• Superannuation audit support

13. Final Thoughts: Take Action Before It’s Too Late

Super compliance is not optional—it’s a legal requirement with serious consequences. If you’ve missed a payment or are unsure of your obligations, contact Trinity Accounting Practice for expert help.

14. Book a Consultation Today

📍 159 Stoney Creek Road Beverly Hills NSW 2209
☎️ 02 9543 6804
🌐 www.trinitygroup.com.au
📅 Book a consultation

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