The High Court of Australia today confirmed the Superannuation Guarantee Charge Act (SGCA) and the Superannuation Guarantee Administration Act (SCAA) are valid under Australia's Constitution in the case Roy Morgan Research Pty Ltd v Commissioner of Taxation.
Minister for Superannuation, Bill Shorten, said he was pleased with the outcome of the case.
"The superannuation guarantee charge (SGC) was introduced to encourage employers to pay their employees' superannuation on time," Mr Shorten said.
"It also makes sure employees are compensated appropriately if their employer is late paying their superannuation."
"The SGC plays an important role in the integrity of our superannuation system and I am pleased to see it will be maintained under this High Court decision."
Background:
Employers who fail to pay their employees' superannuation on time are required to pay the superannuation guarantee charge (SGC) to the Australian Taxation Office (ATO), which then transfers the SG amount plus an interest component to the employee's superannuation fund.
The High Court today found the SGC was constitutionally valid following a challenge by Roy Morgan Research Pty Ltd.
For more information about the SGC visit www.ato.gov.au