The last-ever quarterly SGC statement was due 28 August 2026
The June 2026 quarter was the final one under the old rules. Its SG payment was due 28 July 2026. If you missed that, a super guarantee charge statement and payment were due by 28 August 2026, under the old regime and at the old rates. If you still have not lodged, do it now: the charge keeps growing and the ATO can add penalties for a late statement. Two traps on the way out: the late payment offset is not available for this final quarter, and contributions received on or after 29 July 2026 cannot be applied to it at all.
What Is the Super Guarantee Charge?
The super guarantee charge is what an employer owes the ATO when super is not paid in full and on time. It is designed to cost more than paying the super would have, and under Payday Super it is assessed per payday rather than per quarter, so a single misconfigured pay run can generate a charge every fortnight until it is fixed.
Since 1 July 2026 the charge has exactly four components:
| Component | Amount | Can it be reduced? |
|---|---|---|
| Individual final SG shortfall | The super that should have been paid | No |
| Notional earnings | 11.51% (October–December 2026), compounded daily | Only by paying sooner |
| Administrative uplift | Up to 60% of shortfall + notional earnings | Yes — to nil |
| Choice loading | 25% of the value of contributions, max $1,200 per notice period | Only by following choice rules |
The late payment penalty is not one of them. It is widely listed as a fifth component, but the late payment penalty arises separately and much later, as the section below explains.
When Is Super Actually Due?
Within 7 business days of payday, but the test is when the money is received by the employee’s fund, not when you send it. Clearing house and fund processing time counts against you, so allow for it inside the 7 business days.
A longer 20 business day deadline covers two situations, not one: a new employee, and a first contribution to a new complying fund for an existing employee after you stopped contributing to another. A business day excludes weekends and any public holiday that covers the whole of an Australian state or territory. That holiday removes a day nationally, so a state you do not operate in can still move your deadline. A holiday in only part of a state or territory (such as Royal Hobart Show Day) is still a business day.
How to Get the Administrative Uplift to Nil
The administrative uplift is the largest lever available once a shortfall has happened, and it is routinely described wrongly as a single all-or-nothing test. There are two independent reductions and they stack. The uplift starts at 60%:
- No ATO-initiated assessment in the two years to that payday removes 20 percentage points. SGC from before 1 July 2026 is ignored for this test.
- A voluntary disclosure made before an assessment removes up to 40 more, decaying with time.
| Voluntary disclosure lodged | No prior assessment | Prior assessment |
|---|---|---|
| Within 30 days | 0% | 20% |
| 31–60 days | 5% | 25% |
| 61–120 days | 10% | 30% |
| More than 120 days | 25% | 45% |
| Not lodged | 40% | 60% |
Percentages are the resulting administrative uplift, measured from the payday.
The practical conclusion: disclosing quickly beats disclosing precisely. The reduction decays from the payday, not from when you finish reconciling, so an employer who discovers a problem is almost always better off disclosing immediately and refining the numbers afterwards.
The Late Payment Penalty Is Separate
A late payment penalty of 25% of the outstanding charge can be imposed, rising to 50% if you were liable for the same penalty in the previous 24 months. It is not part of the SGC, and it does not arrive automatically. The sequence is: the charge is assessed, it goes unpaid for 28 days, a Notice to Pay issues, and it remains unpaid a further 28 days.
The ATO says the penalty cannot be remitted, so unlike the administrative uplift there is no disclosure route out of it. Two qualifications matter, though: it reduces to nil under an exceptional circumstance determination, and if the ATO reduces the underlying charge the penalty reduces with it.
The Charge Is Now Tax-Deductible — This Reversed
For paydays from 1 July 2026, all four components of the super guarantee charge are deductible. The legacy quarterly SGC was expressly not, and that non-deductibility was much of what made it punitive. A great deal of published guidance still says the SGC cannot be claimed, but that is now true only of the old quarterly charge.
Three things attached to the new charge remain non-deductible:
- general interest charge accruing on a late SGC payment
- the late payment penalty
- SGC relating to quarterly periods before 1 July 2026
Does Payday Super Mean Super on Overtime?
No. Overtime is still excluded.
Payday Super calculates SG on “qualifying earnings” instead of ordinary time earnings, and that sounds like a broadening. The ATO is explicit that the only additional payment type is commissions for work done entirely outside ordinary hours. Everything counted for SG up to 30 June 2026 still counts; nothing else was added. What changed is the timing and the penalties, not the base.
Still excluded, despite frequent claims otherwise:
- overtime, where ordinary hours are clearly identified in an award or agreement
- bonuses solely for work performed entirely outside ordinary hours
- annual leave loading linked to a lost opportunity to work overtime
- expense allowances expected to be fully expended
Included, as before:
- ordinary time earnings
- ordinary commissions
- performance, Christmas, sign-on and referral bonuses
- annual leave loading other than the lost-overtime kind
- task allowances for skill, adverse conditions or retention
- salary sacrificed amounts that would otherwise be qualifying earnings
The Maximum Contribution Base Became Annual
The maximum contribution base caps the earnings on which SG is compulsory. From 1 July 2026 it is an annual $270,830, replacing $62,500 per quarter. The structure changed as well as the number: the maximum contribution base is now a running year-to-date test that resets each financial year, instead of four separate quarterly caps.
The maximum contribution base is derived from the concessional cap: $32,500 × 100 ÷ 12, rounded down to the nearest $10. At 12% that caps compulsory SG at about $32,500 a year. Employers can contribute more voluntarily. See our superannuation calculator to model contributions.
Concessional Cap Relief Is Announced, Not Law
More frequent contributions can shift which financial year some of them land in, which can push an employee over the $32,500 concessional cap through no fault of their own. Treasury said in February 2026 that it would introduce technical amendments to prevent this.
As at 22 October 2026, the ATO’s own changeover guidance still states in terms: “This is not yet law.” The relief is now in a bill: Schedule 6 of the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, introduced on 14 October 2026 and now before the House of Representatives; the Senate referred it to the Senate Economics Legislation Committee on 15 October 2026, with a report due 13 November 2026. Its explanatory memorandum says certain employer contributions relating to the June 2026 quarter “are disregarded when working out concessional contributions for the 2026-27 income year”, and that it “does not apply to sacrificed contributions”. The bill has not passed. Until it is legislated the ordinary rules apply, and the options are the ones that already exist: reduce voluntary contributions, or apply to have contributions disregarded or reallocated. Do not plan around relief that does not yet exist. See our Division 293 guide for the related high-income charge.
The Old Quarterly Charge, for Earnings up to 30 June 2026
The old quarterly charge is still live and still governs anything paid before the changeover. Under that regime the charge was:
- The shortfall calculated on total salary and wages including overtime, not OTE, so the charge exceeded the super actually owed
- Nominal interest at 10% a year, running from the start of the quarter, which by law could not be reduced or waived
- An administration fee of $20 per employee per quarter
- Choice liability capped at $500
- Not tax-deductible, and a statement had to be lodged
The final quarterly SG payment was due 28 July 2026, and the final statement was due 28 August 2026.
Frequently Asked Questions
Super guarantee charge questions and answers
What is the super guarantee charge?
The super guarantee charge (SGC) is what an employer owes the ATO when superannuation is not paid in full and on time. It is deliberately more expensive than paying the super would have been. Since Payday Super commenced on 1 July 2026 the charge has exactly four components for each payday: the individual final super guarantee shortfall, notional earnings on it (general interest charge, compounded daily), an administrative uplift of up to 60%, and a choice loading where choice-of-fund rules were not followed. A late payment penalty can follow later, but it is a separate penalty rather than part of the charge.
Do I still need to lodge a super guarantee charge statement?
Not for paydays from 1 July 2026. The ATO now calculates the charge and issues a notice of assessment, and there is no statement to lodge. But the old obligation is still live for the June 2026 quarter and earlier. If you missed the 28 July 2026 due date for that final quarter, the super guarantee charge statement and payment were due by 28 August 2026, the last one there will ever be. If it is still outstanding, lodge it now: the charge keeps growing and late statements can attract penalties.
When does super have to be paid under Payday Super?
Under Payday Super, the employer's contribution must be RECEIVED by the employee's fund within 7 business days of payday, not merely sent by then. Clearing house and fund processing time counts against that deadline. A longer 20 business day deadline covers two situations: a new employee, and a first contribution to a new fund for an existing employee after you stopped contributing to another one. A business day excludes weekends and any public holiday that applies to the whole of a state or territory. Such a holiday is not a business day anywhere in Australia, even if you are not in that state or territory. A holiday in only part of a state or territory (Royal Hobart Show Day, for example) still counts as a business day.
Is the super guarantee charge tax-deductible?
Yes for paydays from 1 July 2026, which reverses the old position: the legacy quarterly SGC was expressly not deductible, and that was much of what made it punitive. All four components of the new charge are deductible. Two things attached to it are not: the general interest charge that accrues on a late SGC payment, and the late payment penalty. SGC relating to quarterly periods before 1 July 2026 also remains non-deductible. Guides still saying flatly that "the SGC is not deductible" are describing a regime that ended on 30 June 2026.
How is the super guarantee charge calculated?
Start with the shortfall: the super that should have been paid for that payday. Add notional earnings on it, calculated at the general interest charge, compounded daily, from the day the contribution was due. Add the administrative uplift, which starts at 60% of the shortfall plus notional earnings and can be reduced to nil. If choice-of-fund rules were not followed, add a choice loading of 25% of the value of contributions, capped at $1,200 for each notice period rather than per payday or per employee.
What is the current general interest charge rate?
The general interest charge rate is 11.51% a year for the October–December 2026 quarter, which the ATO publishes as a daily rate of 0.03153425%, compounded daily. It was 11.43% in July–September 2026. This rate resets every quarter and is the figure on this page most likely to go out of date. The next one is generally announced about two weeks before the quarter starts. Because interest compounds daily, an unpaid shortfall grows faster than the annual rate alone suggests.
Can the administrative uplift be reduced to nil?
Yes. Two separate reductions stack, rather than one test you pass or fail. The administrative uplift starts at 60%. Having no ATO-initiated assessment in the two years to that payday takes 20 percentage points off. Making a voluntary disclosure before an assessment takes off up to 40 more, depending on how fast you move: disclosing within 30 days removes the full 40. An employer with a clean two-year record who discloses within 30 days gets to nil. One who does neither stays at 60%. The disclosure reduction shrinks the longer you wait, so an early disclosure cuts more of the uplift than a later, more precise disclosure.
What is the late payment penalty, and can it be waived?
The late payment penalty is 25% of the outstanding charge, rising to 50% if you were liable for the same penalty in the previous 24 months. It is not part of the SGC and it does not arise automatically. It applies only after the charge is assessed and goes unpaid for 28 days, a Notice to Pay is issued, and the charge remains unpaid a further 28 days. The ATO says the penalty cannot be remitted, so there is no disclosure route out of it. It does reduce to nil under an exceptional circumstance determination, and if the ATO reduces the underlying charge, the penalty reduces with it.
Does Payday Super mean super is now paid on overtime?
No. Payday Super calculates SG on "qualifying earnings" instead of ordinary time earnings (OTE). That sounds like a broadening, but the ATO states that the only additional payment type is commissions for work done entirely outside ordinary hours. Everything counted for SG up to 30 June 2026 still counts, and nothing else was added. Overtime remains excluded where ordinary hours are clearly identified in an award or agreement. So do bonuses solely for work performed entirely outside ordinary hours, and annual leave loading tied to a lost overtime opportunity. Payday Super changed when super is paid and the penalties for paying late, not the earnings base.
Is there a cap on how much super an employer must pay?
Yes. The maximum contribution base caps the earnings on which SG is compulsory. From 1 July 2026 it is an ANNUAL figure of $270,830, a structural change from the previous $62,500 per quarter. It is derived from the concessional cap: $32,500 × 100 ÷ 12, rounded down to the nearest $10. At 12% that caps compulsory SG at about $32,500 a year. Being annual, it is a running year-to-date test rather than a per-payday one, and it resets each financial year.
What were the old quarterly SGC rules?
For earnings paid up to 30 June 2026, the old quarterly SGC rules still apply. The quarterly charge was the shortfall calculated on total salary and wages rather than OTE, which made it larger than the super actually owed. On top of that came nominal interest at 10% a year from the start of the quarter, and an administration fee of $20 per employee per quarter. The quarterly charge was not deductible, a statement had to be lodged, choice liability was capped at $500, and the interest could not be reduced or waived. One trap on the way out: the late payment offset is not available for the final June quarter, and contributions received on or after 29 July 2026 cannot be applied to it at all.
Will employees be pushed over their concessional cap by Payday Super?
It is possible, because more frequent contributions can shift which financial year some of them land in. Relief has been announced: Treasury said in February 2026 that it would introduce technical amendments. But as at 22 October 2026 the ATO's own guidance still states in terms that "This is not yet law." A bill to legislate it (Schedule 6 of the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026) was introduced on 14 October 2026 and has not passed. A Senate committee is due to report on it by 13 November 2026. Until it is legislated, the ordinary rules apply: the concessional cap is $32,500, and the existing options are to reduce voluntary contributions, or to apply to have contributions disregarded or reallocated. Do not plan on relief that does not yet exist.
What happens if my employer has not paid my super?
Check your payslips and your myGov ATO account first. Under Payday Super your fund must receive each contribution within 7 business days of payday (20 business days for a new employee, or for a first contribution to a new fund after you stopped contributing to another one), so a gap is now visible in weeks rather than months. Raise it with your employer. If it is not resolved, report it with the ATO's unpaid super referral tool, which asks for your tax file number. To keep your identity confidential, use the ATO tip-off form instead. The ATO can audit the employer and raise the charge, and there is no time limit on when the ATO can make the first charge assessment for a payday.
How this guide was verified▼
Every figure derives from a single constants file checked against ato.gov.au on 9 October 2026: the charge components and administrative uplift schedule from QC105848, payment deadlines from QC105846, qualifying earnings from QC105843, the general interest charge rate from QC16145, and the legacy quarterly regime from QC33743.
Three things commonly published about this charge are wrong and are corrected here: the late payment penalty is not one of its components, the administrative uplift is two stacking reductions rather than one all-or-nothing test, and the $1,200 choice-loading cap applies per notice period. The general interest charge rate resets quarterly, so the quarter it belongs to is printed beside it. The October–December 2026 rate is current and the next is expected mid-December 2026.
Sources & References
- 1What happens if you don't pay super correctly (QC105848), Australian Taxation Office
- 2Payment deadlines for Payday Super (QC105846), Australian Taxation Office
- 3What payments are qualifying earnings (QC105843), Australian Taxation Office
- 4General interest charge rates (QC16145), Australian Taxation Office
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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