The Super guarantee charge (SGC) statement records:

• the super guarantee charge calculations
• your decisions on whether you want to apply your late payment offset.

Choice liability

The Superannuation guarantee charge statement also records the amount of choice liability you may need to pay.

The choice liability is recorded at Column F in the Employee details tab of the Super guarantee charge (SGC) statement.

The choice liability is the penalty for not complying with the choice of fund requirements. You pay it if:

• you haven't given them a Standard choice form within the required timeframe or when they asked for one
• you paid their super on time to a complying super fund but not the fund they chose
• the employee started working for you on or after 1 November 2021 and did not make a choice, and you did not request a stapled super fund for them or you did not contribute to a notified stapled super fund
• you charge them a fee for implementing their choice of fund.

If you don’t give an eligible employee a choice of fund form or pay into a stapled super fund where the stapled fund rules apply, the payments will go to the employer-nominated fund instead of the employee’s super fund. These contributions are called 'no choice contributions'.

An employer's individual super guarantee shortfall for an employee for a quarter is increased by the following formula, resulting in the choice liability:

• no choice contributions × 25%.

The liability is capped at $500 per employee, per notice period. The notice period for an employee starts on the later of either:

• 1 July 2005
• the day on which the employee is first employed by the employer
• the day after the preceding notice period has ended.

A notice period ends when you're issued with a notice of assessment which includes the choice liability.

The choice liability doesn't apply if:

• you provide an employee with a choice form 
• the employee doesn't nominate a super fund
• the Commissioner advised there is no stapled super fund for that employee (when the stapled fund rules apply) and
• their super guarantee payments go to the default super fund.

When completing the Superannuation guarantee charge statement, you must record the amount of choice liability to be paid, as it forms part of the super guarantee charge.

• If there is no choice liability, simply record zero at Column F.
• If there is a choice liability, you must calculate the liability and record it at Column F.