Super Guarantee Charge
A penalty imposed on employers who fail to pay the correct SG contributions on time, including the shortfall, notional earnings, and an administrative uplift.
The Super Guarantee Charge (SGC) is a penalty imposed on employers who fail to pay the minimum Superannuation Guarantee (SG) contributions on time. Under Payday Super (law from 1 July 2026), the SGC is assessed separately for each payday (each "QE day") and consists of: (1) the individual SG shortfall for that payday, (2) a notional earnings component that accrues daily at the general interest charge (GIC) rate, (3) an administrative uplift of up to 60% of the shortfall plus notional earnings (which can be reduced, including to nil, if the employer lodges a voluntary disclosure before the ATO raises an assessment), and (4) a 25% choice-of-fund loading if choice-of-fund rules were breached. This replaced the old system, under which the SGC was assessed quarterly on the employee's total salary and wages (not just ordinary time earnings) plus a flat 10% p.a. shortfall interest component and a $20 per employee per quarter administration fee.
Unlike the old regime — where the SGC was not tax-deductible for the employer, unlike normal SG contributions — from 1 July 2026 the SGC shortfall, notional earnings, and administrative uplift are tax-deductible (late contributions themselves are also deductible). Late payment remains significantly more expensive than paying on time, particularly once the administrative uplift and choice loading are added.
Employers must lodge a Voluntary Disclosure Statement with the ATO to self-report any SGC liability under the new regime (previously a Superannuation Guarantee Charge Statement). If an employer fails to pay SG and doesn't lodge on time, the ATO can rely on Single Touch Payroll data to raise an assessment, and can also impose additional penalties. Employees who believe their employer has not paid the correct super can report it to the ATO, which will investigate and recover the amounts on their behalf.
How it works
The Super Guarantee Charge is what an employer owes if they don't pay the correct SG on time. From 1 July 2026, under Payday Super, it's assessed separately for each payday rather than each quarter, and it's made up of the missed contribution itself, notional earnings that accrue daily at the general interest charge rate, an administrative uplift of up to 60% of the shortfall and notional earnings combined, and a further 25% loading if choice-of-fund rules were also breached.
Employers self-report an SGC liability using a Voluntary Disclosure Statement lodged with the ATO — this replaced the old Superannuation Guarantee Charge Statement. From 1 July 2026, the SGC shortfall, notional earnings, and administrative uplift are tax-deductible for the employer, a change from the old regime where none of it was deductible.
Lodging a voluntary disclosure before the ATO catches the underpayment can reduce the administrative uplift, sometimes to nil, which makes proactively self-reporting significantly cheaper than waiting to be assessed. The ATO can also use Single Touch Payroll data to detect underpayment and raise an assessment even without an employer disclosure. Employees who suspect their super hasn't been paid correctly can report it to the ATO, which investigates and recovers the amount owed on their behalf.
Example: SGC after a missed payday
An employer fails to pay a $500 SG contribution due on a particular payday. Under the per-payday SGC, that $500 shortfall starts accruing notional earnings daily at the general interest charge rate, and an administrative uplift of up to 60% of the shortfall plus notional earnings could be added on top — potentially another $300 or more beyond the missed contribution itself.
If the employer instead lodges a voluntary disclosure with the ATO before being caught, that administrative uplift can be reduced, sometimes to nil, making early self-reporting considerably cheaper than waiting for the ATO to raise an assessment based on Single Touch Payroll data.
Related Terms
Superannuation Guarantee (SG)
The compulsory minimum percentage of an employee's qualifying earnings (formerly ordinary time earnings) employers must contribute to their super fund.
Salary Sacrifice
An arrangement where you direct part of your pre-tax salary into super (or other benefits), reducing your taxable income.
Concessional Contributions
Before-tax super contributions taxed at 15% inside the fund, including employer SG, salary sacrifice, and personal deductible contributions.
ATO (Australian Taxation Office)
The government agency responsible for administering Australia's tax and superannuation systems.