Super Guarantee Charge

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.