The super guarantee charge¶

Super has to be paid at the right rate, to the right fund, and on time. If it is not, the ATO can charge you extra. That extra amount is called the super guarantee charge, often shortened to SGC.

The SGC is more than the super you missed. It is designed so that paying late costs more than paying on time, which is why paying on time always matters.

In one line

If super is not paid correctly and on time, the ATO works out the super guarantee charge and sends you a notice of assessment — and the charge is more than paying on time would have cost.

Why this matters¶

Most employers never have to deal with the SGC, because they pay super correctly and on time. But it is worth understanding, because the charge always costs more than the super would have if it had been paid on time. Knowing how it works makes it clear why staying on time is so much cheaper than catching up later.

What you will learn¶

What the super guarantee charge is and when it applies
The parts that make up the charge and how it is assessed
Why paying super on time is cheaper than catching up later

Understanding the concept¶

Since 1 July 2026, under Payday Super, you pay super with each pay, and it counts as on time when the employee's fund receives it within 7 business days of payday. If the right super is not paid in full and on time, the ATO works out the super guarantee charge for that payday.

The ATO explains that for pays from 1 July 2026 you generally do not lodge a statement yourself. Instead, the ATO works out the charge and sends you a notice of assessment — a notice that tells you the amount you owe. (An older process, where employers lodged a super guarantee charge statement each quarter, applied to super for pays up to 30 June 2026.)

The charge is made up of a few parts. The ATO describes it as including:

the super shortfall — the super that is still unpaid,
a notional earnings amount — interest on the unpaid super,
an administrative uplift — an amount to reflect the cost of chasing it up, and
a choice loading — an extra amount if you did not follow the choice-of-fund rules.

The charge is paid to the ATO, not to the employee's fund. Because the exact amounts change over time, this lesson does not quote specific rates or dollar figures. For the current amounts and how they are worked out, go to the ATO.

For accountants & bookkeepers

Under Payday Super the charge is assessed per payday (the ATO calls it a QE day), and the ATO issues a notice of assessment rather than requiring a self-lodged statement for pays from 1 July 2026. The four components are the outstanding SG shortfall, notional earnings, an administrative uplift, and any choice loading. The ATO has said that for pays from 1 July 2026 the super guarantee charge you pay can be claimed as a tax deduction — a change from the older charge, which was not deductible — but it is still more than paying on time would have cost. A voluntary disclosure can reduce the administrative-uplift component. Confirm the current components, rates and treatment directly with the ATO before advising a client, as they are updated from time to time.

Example¶

A small business misses paying super for one payday, and the fund does not receive it in time. Because the super was not received on time, the ATO works out the super guarantee charge for that payday and sends the business a notice of assessment.

That charge covers the super that was short, plus interest and an administrative uplift. Paying on time would have avoided all of it — which is why the business sets a reminder to pay super with every pay from now on.

Common mistakes¶

Thinking that catching up the super later avoids the charge — once it is late, the ATO can still work out and assess the super guarantee charge.
Assuming the charge is just the missed super — it also includes interest and an administrative uplift, plus a choice loading if the fund-choice rules were not met.
Expecting to lodge a quarterly statement — for pays from 1 July 2026 the ATO works the charge out and sends you a notice of assessment.
Paying the charge to the fund — the charge is paid to the ATO.

How this works in myaccountant¶

In the app — myaccountant helps you pay super to your employees' funds electronically and keeps a record of each payment and when the fund received it, so you can pay on time and avoid the super guarantee charge in the first place. If super has been paid late, the charge is worked out and assessed by the ATO, not by the app — use your payment records in myaccountant to see what was paid and when.

Key points¶

The super guarantee charge (SGC) applies when the right super is not paid on time.
Since 1 July 2026, the ATO works out the charge and sends you a notice of assessment.
The charge includes the super shortfall, interest, an administrative uplift, and a choice loading if the fund-choice rules were not followed.
The charge is paid to the ATO, not to the employee's fund.
The charge is always more than paying the super on time would have cost.
For current amounts and how the charge is treated for tax, go to the ATO.

Learn next¶

General information only — not tax, super or financial advice.

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