Superannuation Guarantee Charge. policy introduced in 1991/92 Federal Budget, providing that, as from 1 July 1992, all employers who fail to contribute a prescribed level and standard of contributions to complying superannuation funds on behalf of their employees are required to pay a charge to make up those contributions. The SGC is scheduled to increase to 9% by 1999, and to be complemented by a compulsory additional 3% employee contribution, to be phased in from the 1997/98 financial year. A further means-tested Government 'co- contribution' to match the employee contribution has also been foreshadowed to take effect from 1998/99 (although at the time of printing April 1996 it was unclear whether this co- contribution would be delivered as a cash contribution to fund members or in the form of a tax rebate). The combination of these measures will mean that, by the turn of the century, up to 15% of wages and salaries of Australian workers will be invested in compulsory superannuation.
Superannuation Guarantee Charge. This specifies the minimum level of superannuation an employer must provide. If there is a shortfall, the employer is liable to a charge for the shortfall, plus penalties.