The super guarantee charge¶

When super is not paid on time, a separate charge can apply on top of the super itself. It is called the super guarantee charge, often shortened to SGC. It is not a fine you choose to pay — it is worked out and issued by the Australian Taxation Office (ATO).

Under Payday Super, which starts from 01/07/2026, super is due for each payday. If a fund does not receive the right amount in time, the super guarantee charge is what follows. Knowing what it is takes the surprise out of it.

Why this matters¶

Paying super on time is the goal. But mistakes happen — a payment bounces, details are wrong, or a run is missed. When that happens, the super guarantee charge is the result, and it costs more than the super would have. Understanding it helps you act early and keep the cost small.

What you will learn¶

• What the super guarantee charge is and when it applies
• How the ATO assesses it under Payday Super
• What the main parts of the charge are

Understanding the concept¶

The super guarantee is the super an employer must pay for eligible employees. When that super does not reach the employee's fund on time, the super guarantee charge applies instead.

The important change under Payday Super is who works it out. In the old quarterly system, employers had to self-lodge a statement to report late super. Under Payday Super, the ATO works out the charge and sends you a notice of assessment — a document that sets out what you owe. You do not lodge a quarterly SGC statement anymore.

The charge is made up of a few parts. The main ones are:

• the shortfall — the super that is still outstanding for your employees
• a notional-earnings amount — an interest-like amount that stands in for the earnings the money would have made in the fund
• an administrative uplift — an amount that reflects the cost of putting it right

One more thing worth knowing: the new super guarantee charge is tax-deductible. The old quarterly charge was not. This is a genuine improvement under Payday Super.

Example¶

Jordan runs a small cafe and pays staff fortnightly. One payday, a super payment is sent with an old fund account number, so the fund rejects it. The super does not reach the employee's fund in time. Because of that, the super guarantee charge applies for that payday. The ATO works out the charge — including the outstanding super, an interest-like amount and an administrative amount — and sends Jordan a notice of assessment setting out what to pay. Jordan does not have to lodge a statement to start this; the ATO issues the assessment.

Common mistakes¶

• Thinking you still self-lodge a quarterly SGC statement — under Payday Super the ATO assesses the charge and issues a notice of assessment.
• Assuming the charge is just the missed super — it also includes an interest-like amount and an administrative amount.
• Believing the charge is never deductible — the new super guarantee charge is tax-deductible (the old quarterly one was not).

How this works in myaccountant¶

Key points¶

• The super guarantee charge applies when super is not received by the fund on time.
• Under Payday Super the ATO works it out and issues a notice of assessment.
• You do not self-lodge a quarterly SGC statement anymore.
• The main parts are the shortfall, a notional-earnings amount and an administrative uplift.
• The new super guarantee charge is tax-deductible; the old quarterly one was not.
• Paying super on time is the surest way to avoid the charge.

Learn next¶

• Interest and administration fees
• Late super payments
• Voluntary disclosure

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