The Super Guarantee Charge¶

If you pay super late, or do not pay it at all, there is a cost beyond the super itself. The Australian Taxation Office (ATO) applies the Super Guarantee Charge (SGC). This lesson explains what the SGC is, what it is made up of, and why it is worked out differently from ordinary super. It keeps amounts general — for the exact figures and depth, see the Compliance and penalties module.

In one line

Miss the super deadline and you owe the Super Guarantee Charge — the shortfall, an interest-like amount and an admin component. Under Payday Super the ATO works it out and sends you a notice of assessment.

Why this matters¶

The SGC is designed to be more than just catching up on the super you owe. It adds an interest-like amount and an administration cost on top of the shortfall, so it can end up costing more than paying the super on time would have. Understanding the SGC is the strongest reason to pay super on time in the first place.

What you will learn¶

What the Super Guarantee Charge is and when it applies
The parts that make up the SGC
Why the SGC is worked out differently from ordinary super

Understanding the concept¶

When the SGC applies. If super is not received by the employee's fund by the deadline, you have missed your super guarantee obligation, and the SGC applies. This is true even if you later pay the super — once the deadline passes, the charge applies.

How it is dealt with (from 1 July 2026). Under Payday Super, the ATO explains that it works out the charge for you and issues a notice of assessment — you do not lodge a super guarantee charge statement yourself. (Before 1 July 2026, employers had to lodge an SGC statement each quarter to report and pay the charge; that older process applied to periods before the change.) The ATO has also said it will take a supportive approach in the first year as employers adjust to the new system.

What the SGC is made up of. The ATO explains that the SGC brings together several parts:

The super shortfall — the super you did not pay on time.
An interest-like amount — to make up for the time the employee's money was not in their fund.
An administration component — reflecting the cost of the ATO having to step in.

There can be an extra amount if you did not follow the choice-of-fund rules. The exact rates and dollar amounts are set by the ATO and are covered in the Compliance and penalties module.

Why it is worked out differently from ordinary super. Ordinary super is worked out on a set base of earnings. The SGC is calculated on a different, usually wider base and adds the interest-like and administration parts on top. This means the SGC can come to more than the super would have cost if paid on time — another reason not to miss the deadline.

For accountants & bookkeepers

The SGC shortfall base is generally broader than the base ordinary super is worked out on, so the charge can exceed the original liability. Under Payday Super the charge is restructured — the components include the base shortfall, a notional-earnings (interest-like) amount and an administrative uplift, with reductions available for prompt voluntary disclosure before the ATO assesses you. The older SGC was generally not tax deductible; the ATO has said the new Payday Super charge will be deductible. Treat all rates and amounts as ATO-set and current-at-the-time, and confirm before advising.

Example¶

A small business misses the super deadline for one employee — the fund did not receive the contribution in time. Paying the fund late does not undo the missed deadline: the SGC now applies. Under Payday Super the ATO works out the charge and sends the employer a notice of assessment covering the shortfall, an interest-like amount and an administration amount. Because the SGC is worked out on a wider base, it ends up costing the business more than the super would have if it had been paid on time. The lesson the owner takes away: pay super on time, every time.

Common mistakes¶

Thinking you can fix a late payment by just paying the fund — once the deadline passes the SGC applies.
Assuming the SGC equals the missed super — it is usually more, once the interest-like and admin amounts are added.
Assuming you must still lodge a quarterly SGC statement — under Payday Super the ATO works the charge out and assesses you.
Not acting quickly — delay only adds to the interest-like amount that builds up, and prompt disclosure can reduce the charge.

How this works in myaccountant¶

In the app — myaccountant works out the super on each pay, shows you when it is due, and tracks whether each contribution has been paid on time, so you can spot a late payment early. The app does not work out or pay the SGC for you — the charge is assessed by the ATO.

Key points¶

Late or unpaid super means the Super Guarantee Charge applies.
Under Payday Super the ATO works out the charge and issues a notice of assessment — you no longer lodge a quarterly SGC statement.
The SGC is made up of the super shortfall, an interest-like amount and an administration component.
The SGC is worked out on a different, wider base than ordinary super, so it can cost more than paying on time.
The ATO has said it will take a supportive approach in the first year of Payday Super.
See the Compliance and penalties module for the full detail.

Learn next¶

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

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