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Quarterly Contributions Required from 1 July 2003

From 1 July 2003, employers must make superannuation guarantee contributions for their employees on at least a quarterly basis. Employers that currently make more frequent contributions (monthly) should continue to do so.

If employers do not meet their quarterly superannuation guarantee (SG) obligations, they will need to lodge a superannuation guarantee statement and pay the superannuation guarantee charge (SGC) each quarter.

The SGC is made up of a nominal interest component and an administration component, as well as the actual shortfall amount. The nominal interest component will be charged at a rate of 10% from the beginning of the quarter in which the shortfall arose up to the day the related superannuation guarantee statement is lodged and payment of the shortfall is made.

The $50 fixed administration component that applied prior to 1 July 2003 will be removed, and the $30 charge per employee for which there is a shortfall will be reduced to $20.