The Super guarantee charge statement records:

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

Choice liability

The Super 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 statement.

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

• you haven't given your employee a Superannuation 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 didn't make a choice, and you:
  • didn't request a stapled super fund for them, or
  • didn't 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 choice liability is capped at $500 per employee, per notice period. The notice period for an employee starts on the later of:

• 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 ATO 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 Super guarantee charge statement, you must record the amount of choice liability to be paid, as it forms part of the SGC:

• 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.