The Super Guarantee Charge (SGC) regime is changing significantly from 1 July 2026 with the introduction of Payday Super. For accounting practices, this means managing two different compliance frameworks during the transition: the final quarterly SG obligations for the June 2026 quarter and the new event-based requirements that apply from 1 July 2026.
For context, the ATO reported $1.91 billion in SGC liabilities raised during 2023–24, including interest, while its estimated net super guarantee gap for 2021–22 was 6.3%, or $5.16 billion. The ATO also issued 8,710 director penalty notices relating to 6,500 companies. These figures show why accurate calculation, timely disclosure and strong payroll controls remain important for practices managing employer compliance.
This blog explains how SGC obligations work, what changes under Payday Super, how late payments affect the charge, and what accountants need to consider when managing client obligations.
What Is the Super Guarantee Charge?
The Super Guarantee Charge applies when an employer does not meet its superannuation guarantee obligations correctly. Under the quarterly regime, the SGC generally comprises the employee superannuation shortfall, nominal interest and an administration component. From 1 July 2026, Payday Super changes the timing and calculation of SG obligations, with super calculated on qualifying earnings for each payday.
Quarterly SGC vs Payday Super
The ATO confirms that Payday Super applies to qualifying earnings paid on or after 1 July 2026, while the final quarterly obligation for the period ending 30 June 2026 continues under the existing framework.
Lodging the SGC
SGC Statements for Quarters to 30 June 2026
For quarterly obligations relating to periods ending on or before 30 June 2026, the existing super guarantee charge statement requirements continue to apply. If a client has not paid the required SG amount on time and to the correct fund, the practice must calculate the SGC, lodge the statement and pay the charge by the applicable due date.
ATO Assessments From 1 July 2026
From 1 July 2026, an ATO Super Guarantee Charge assessment can be made using information available to the Commissioner, including payroll, Single Touch Payroll, super fund reporting and employee notifications. This means practices need reliable payroll and contribution records even where a client has not proactively disclosed a shortfall.
Voluntary Disclosure
Under Payday Super, employers can lodge a voluntary disclosure statement to report an SG shortfall before the
ATO makes an assessment. The timing of that disclosure affects the administrative uplift. A statement lodged within the first 30 calendar days can reduce the uplift by 40 percentage points, with smaller reductions applying for later disclosures.
How the SGC Is Calculated
Quarterly Components
For the quarterly regime, the SGC includes the individual super guarantee shortfall, nominal interest calculated at 10% per annum from the start of the relevant quarter, and an administration fee of $20 per employee per quarter. The charge is therefore generally higher than the original unpaid super contribution.
Payday Super Components
Under Payday Super, an employer’s SG shortfall for a qualifying earnings day can comprise four components: individual final SG shortfalls, individual notional earnings, an administrative uplift and choice loadings. The ATO’s current guidance states that the administrative uplift initially applies at 60% of the relevant individual final SG shortfalls and individual notional earnings components, subject to available reductions.
Late Payments
Late Payment Offsets
For the quarterly regime, a late contribution may be elected as a late payment offset against the client’s SGC for the relevant employee. The election is made through the SGC statement and is binding. Practices should review the payment date, fund receipt date, and relevant quarter before making the election.
Catch-Up Payments for Old Quarters
A late contribution does not automatically eliminate an older SGC liability. For quarterly obligations, the practice must determine whether the payment can be used as an offset or carried forward under the applicable rules. The ATO also states that late payments used as offsets are not tax deductible, while qualifying employer contributions may have different deduction treatment.
SGC Penalties
Part 7 Penalties (Quarterly)
A Part 7 penalty may apply when an employer fails to lodge an SGC statement or provide required information. The penalty can reach 200% of the SGC payable.
Payday Super Penalties
Under Payday Super, the administrative uplift replaces the quarterly penalty approach for shortfalls. The administrative uplift initially applies at 60%, with reductions available where employers make a timely voluntary disclosure.
Administrative Uplift Reductions
The administrative uplift can be reduced through timely voluntary disclosure. Disclosure within 30 days can reduce the uplift by 40 percentage points, potentially bringing it to 0%.
Director Penalty Notices
Unpaid SGC can create personal liability for company directors. In 2023–24, the ATO issued 8,710 director penalty notices involving 6,500 companies for super liabilities.
Is the SGC Tax Deductible?
The SGC is not tax deductible because it is not treated as a superannuation contribution. The ATO also states that an employer cannot claim a deduction for a late contribution made specifically to reduce its SGC liability. Practices should therefore distinguish deductible super contributions from amounts paid towards an SGC liability.
ATO Approach for 2026–27
The 2026–27 year introduces more frequent super compliance data and a shorter period between payroll and contribution obligations. Under Payday Super, the ATO can use STP, super fund reporting and other available information to identify potential shortfalls. Practices should therefore prioritise payroll reconciliation, contribution tracking and early identification of exceptions rather than relying solely on quarterly reviews.
How SuperRecords Supports Practices
SuperRecords can support accounting practices by taking on structured SMSF administration and back office work, helping practices manage operational capacity while maintaining appropriate review and quality controls. For firms managing growing client portfolios, the objective is to create additional capacity without adding the same level of internal processing workload.
Frequently Asked Questions
