Superannuation Guarantee Charge

abbrev. SGC, a non-tax deductible charge levied on employers who do not make the minimum superannuation contributions required by the Superannuation Guarantee (Administration) Act. The charge is based on a percentage (currently 9% and moving to 12%) of an employee's salary and wages and includes amounts for interest and administration costs. An employer can avoid the SGC by paying the equivalent of a certain percentage (currently 9%) of an employee's ordinary time earnings to an appropriate complying superannuation fund or RSA within a prescribed time limit.

See also choice of superannuation fund , Superannuation Guarantee legislation , tax deduction