Penalty charges under superannuation guarantee charge

Status: Current  
Version Number: 1
Legislation: Payroll Tax Act 2009
Date Issued: 1 July 2009

Revenue Rulings do not have the force of law.


The Payroll Tax Act 2009 (the “Act”), which commenced on 1 July 2009, rewrote and repealed the Pay-roll Tax Act 1971 and provides fully harmonised legislation with New South Wales, Victoria, Tasmania and Northern Territory.

Under Section 17(1) of the Act, wages include superannuation contributions that employers pay, or are liable to pay, in respect of their employees, deemed employees and directors. Therefore, superannuation contributions are subject to payroll tax.

One of the items listed in the definition of superannuation contributions in Section 17 of the Act is superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 (Cwlth) (the “SGA Act”).

The purpose of this Revenue Ruling is to clarify which components of a superannuation guarantee charge are subject to payroll tax.


Superannuation guarantee charge is made up of:

  • the total of the employer’s individual superannuation guarantee charge shortfalls for the year;
  • the employer’s nominal interest component for the year; and
  • the employer’s administration component for the year.

The sum of these three components is subject to payroll tax.

An employer’s superannuation guarantee charge may also include a penalty component. Any penalty component of a superannuation guarantee charge imposed under Sections 49 or 59 of the SGA Act is not subject to payroll tax.

View this Revenue Ruling as a PDF (PDF 243KB)