An employer’s guide to avoiding the superannuation guarantee charge

The superannuation guarantee charge (SGC) is a charge you might face if you do not pay an employee’s Superannuation Guarantee (SG) contributions on time, in full or to the correct account.

While the SGC is not new, the introduction of Payday Super on 1 July 2026 changed when it applies, and how it’s calculated and assessed by the Australian Taxation Office (ATO).

We’ve put together this summary to help you understand these changes and how to take steps to avoid or reduce the SGC.

When could the SGC apply?

In line with Payday Super, Superannuation Guarantee (SG) contributions must reach your employees’ super funds within seven business days of payday, or you may be liable for the SGC. (There are some exceptions to the 7-business day deadline, such as for new employees).

You may need to pay the SGC if:

You don't pay the minimum super guarantee amounts for your employees in full and on time
You don't correctly follow the choice of fund rules

In most cases, being liable for the SGC is from employers making mistakes, rather than not meeting their super obligations intentionally. These mistakes might include:

Paying super late, even missing the due date by one day
Entering incorrect names, tax file numbers or super fund details which prevents the contribution reaching an employee’s account
Not allowing enough processing time when paying through a clearing house
Miscalculations of earnings which might lead an employer to pay less than the required SG amount
Missing an eligible employee (such as a contractor) who should be treated as an employee for SG purposes

The Australian Taxation Office (ATO) uses the information employers and super funds report to identify any late, insufficient or incorrectly directed contributions.

The information you report through Single Touch Payroll (STP) is compared with the information super funds report. The ATO can then calculate how much super you need to pay, whether it was paid on time and for the right amount and super account.

How much is the SGC?

The SGC is the total of any unpaid super, interest and administrative costs. It includes an additional amount if you haven't followed the choice of fund rules.

Components which may be included in the SGC

SG shortfall	Notional earnings	Administrative uplift	Choice loading
This is the amount of super that should have been paid on payday, minus any eligible contributions which were received on time.	This is the amount of interest on the SG shortfall. Interest is calculated using the ATO’s General Interest Charge rate and compounded daily.	This is up to 60% of the shortfall to support enforcement of these rules. In certain cases, the ATO may reduce this amount, for example if an employer makes a voluntary disclosure statement before they are assessed by the ATO for the SGC.	Where applicable, this is an extra amount added to the SGC if an employer does not meet choice of fund requirements for that employee.

SG shortfall

Notional earnings

Administrative uplift

Choice loading

This is the amount of super that should have been paid on payday, minus any eligible contributions which were received on time.

This is the amount of interest on the SG shortfall.

Interest is calculated using the ATO’s General Interest Charge rate and compounded daily.

This is up to 60% of the shortfall to support enforcement of these rules. In certain cases, the ATO may reduce this amount, for example if an employer makes a voluntary disclosure statement before they are assessed by the ATO for the SGC.

Where applicable, this is an extra amount added to the SGC if an employer does not meet choice of fund requirements for that employee.

Take action to avoid the SGC

Here are some easy ways to help you avoid being liable for the SGC for your employees:

Make sure your payroll system records of employee and fund details stay accurate and complete
Pay super on or as close to your employees’ payday as possible to allow enough time for payroll, clearing house and fund processing
Check your SG contributions are being calculated accurately. Base the 12% SG rate on what counts as qualifying earnings
Make sure your contributions reach your employees’ accounts within seven working days of payday (excluding weekends and state public holidays)

If you are a WA public sector employer, you should also check and resolve any errors and warnings in Employer Online before you submit your contribution file. Read our Payday Super FAQs for more information about cancelled and rejected super contributions.

If you make a mistake or miss an SG contribution

Under Payday Super, employers are no longer required to lodge a Super Guarantee Statement with the ATO to report missed or late SG contributions. Instead, you should correct the contribution and make a voluntary disclosure to the ATO as soon as possible.

A voluntary disclosure statement can only be lodged before you receive a notice of assessment for SGC from the ATO, and it can reduce the amount of super guarantee charge you need to pay.

What to do if you miss a Payday Super contribution.

Further information

Visit the ATO website for more information about the SGC, including when it applies, how it is calculated and what employers need to do if a payment is late or incorrect.

If you need more information or support with these Payday Super changes, please contact your Relationship Manager.

Page last updated 10 November 2026

Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 10 November 2026.