Penalties apply to those employers who fail to submit the compulsory Superannuation Guarantee contributions by the 28th of the month following the end of the each quarter. They are required to complete an SG statement by the 28th of the second month after the end of the quarter and pay the SG charge liability.
The superannuation guarantee charge liability is the sum of the following three parts:
1. Superannuation guarantee (SG) shortfall
> SG shortfall – for each eligible employee, the SG shortfall component is calculated by multiplying the employee’s total salary or wages paid in the quarter by the employee’s shortfall percentage.
>Choice of superannuation fund liability (‘choice liability’) – For each eligible employee, the choice liability component of the superannuation guarantee charge is calculated using the following formula:
25% x (notional quarterly shortfall – employee’s superannuation guarantee shortfall) = employee’s choice liability
2. Nominal interest component
The nominal interest component makes up for the interest that is lost to employees because their employer failed to provide sufficient superannuation support in a contribution period. It is worked out by multiplying the total of the employer’s shortfalls for the quarter by the GIC Interest Rate. Interest is charged from the first day of the relevant quarter to the date on which the superannuation guarantee charge is payable. For example, for the quarter ended 30 June 2007, where an employer lodged the Superannuation guarantee quarterly statement by 28 August 2007, the interest is calculated from 1 April 2007 to 28 August 2007.
3. Administrative component
The administration fee represents part of the cost of collecting and distributing the superannuation guarantee charge back to individual employees. For each quarter of the 2003–04 financial year and subsequent years, $20 is charged for each employee for whom there is a shortfall and/or liability.
4. Refer to the link below for what to do to claim the SG late payment offset
NB: The superannuation guarantee charge is not tax deductible.