40% Penalty for Late SGC Statements

The ATO has recently sharpened its focus on employers who lodge their Superannuation Guarantee Charge (SGC) statements late — and the consequences can be costly. A key risk is the Part 7 Penalty, which can impose a minimum 40% penalty (and up to 200%) on top of the unpaid super and interest.

This penalty applies even if you eventually lodge the SGC statement voluntarily, and even if the super has since been paid. The ATO’s message is clear: late is late, and employers must meet their obligations on time.

What Triggers the Penalty?

You may face the 40%+ penalty if:

• You don’t pay the correct super for your employees by the due date

• You pay super late, even if only by a few days

• You lodge your SGC statement after the deadline

• The ATO contacts you before you voluntarily disclose the error

  
  

Once the SGC statement is late, the ATO generally must apply the penalty unless there are exceptional circumstances — and these are rarely accepted.

What Does the Penalty Include?

When an SGC statement is late, employers must pay:

• SG shortfall (the super that should have been paid)

• 10% interest back-dated to the start of the quarter

• $20 per employee per quarter administration fee

• Part 7 Penalty — minimum 40% of the SGC amount, often higher

Importantly, the SGC is not tax-deductible, meaning the real cash impact can be significant.

Why the ATO Is Cracking Down

With Single Touch Payroll giving the ATO real-time visibility of wages and super, they can quickly detect late or missing contributions. Their compliance programs now actively target employers who fall behind, making it much harder for issues to go unnoticed.

How to Protect Your Business

A few practical steps can help avoid penalties:

• Check payment due dates each quarter (super is due 28 days after the end of each quarter).

• Allow for processing delays — clearing houses often take several days to transfer funds.

• Review your payroll system to ensure SG is being calculated correctly.

• Lodge an SGC statement early if you know super will be late. Early disclosure can significantly reduce penalties.

Seek help quickly if you discover an error — the sooner you act, the better the outcome.

If you’re concerned about your super obligations or think you may have missed a payment, contact us as soon as possible. Acting early can minimise penalties and protect your business from unnecessary costs.  Speak to your Client Manager.