What is Superannuation Guarantee charge (SGC)?
Payroll & people. A plain-English definition for Australian business owners.
The Superannuation Guarantee charge (SGC) is the ATO-administered penalty that applies when an employer fails to pay an employee's superannuation in full and on time.
The charge is built from the unpaid shortfall, a notional-earnings component compensating the employee for lost investment returns, and an administrative uplift, all calculated at rates the ATO sets. Under payday super the charge accrues from the missed payment deadline rather than from quarter-end. Because the SGC always costs more than the super originally due — and attracts further penalties if ignored — late super is one of the most expensive payroll errors an SME can make.
In a connected back office this sits with the People hub, where Valont runs award compliance, hr & ir advisory and employer advice line for Australian SMEs as one team. The full definition set is on the glossary.
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General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.