Paying super late used to cost an employer interest and a $20 fee per employee each quarter. From 1 July 2026 the rules changed. Super is now due with every pay, and missing it triggers a new super guarantee charge with an administrative uplift of up to 60%.
This guide explains both systems: the old quarterly super guarantee charge (SGC) that still applies to earnings paid up to 30 June 2026, and the Payday Super charge for earnings paid from 1 July 2026. We checked every figure against the ATO Payday Super pages and the ATO guidance on the super guarantee charge in October 2026.
It is written for small business owners, company directors and bookkeepers who run payroll. If you are still getting the basics in place, start with our payroll registration checklist and our Payday Super explainer.
Key takeaways
- The super guarantee rate is 12% for 2025-26 and 2026-27.
- From 1 July 2026, super must reach the fund within 7 business days after each payday.
- The new charge adds notional earnings at the general interest charge rate and an administrative uplift of up to 60%.
- Old-regime SGC (earnings to 30 June 2026) is not tax deductible; the new charge is deductible, but GIC and penalties are not.
- Directors can become personally liable for unpaid super guarantee charge.
- The ATO’s first year of Payday Super runs to 30 June 2027 and focuses on employers who do not fix shortfalls.
Unpaid super penalties at a glance
| Item | Earnings paid to 30 June 2026 (quarterly) | Earnings paid from 1 July 2026 (Payday Super) |
|---|---|---|
| When super is due | 28 days after quarter end (28 Oct, 28 Jan, 28 Apr, 28 Jul) | Received by the fund within 7 business days after payday |
| Shortfall base | Salary and wages, including overtime | Qualifying earnings |
| Interest | Nominal interest 10% a year from the start of the quarter | Notional earnings at the GIC rate, compounding daily |
| Fees and loadings | $20 per employee per quarter; choice liability capped at $500 | Administrative uplift up to 60%; choice loading 25%, capped at $1,200 per notice period |
| Who reports it | Employer lodges an SGC statement | ATO assesses; voluntary disclosure optional |
| Extra penalty | Part 7 penalty up to 200% of the SGC | 25% of unpaid charge, or 50% if a penalty applied in the previous 24 months |
| Tax deductible? | No | Charge yes; GIC and penalties no |
Source: ATO – the new super guarantee charge, ATO – the super guarantee charge (to 30 June 2026), ATO – super guarantee penalties, ATO – quarterly due dates, checked 7 October 2026.
What counts as unpaid super?
Super is unpaid if the right amount has not reached the employee’s fund by the deadline. It is not just about missing a payment altogether. Common breaches include:
- Late payments – the money arrives at the fund after the due date, even by one day.
- Underpayments – the employer calculates super at the wrong rate or on the wrong earnings.
- Wrong fund – super is paid to a default fund when the employee nominated another one.
- Missing data – under Payday Super the fund must receive enough information to allocate the money to the member account.
The SG rate is 12% for both 2025-26 and 2026-27, according to the ATO super guarantee rates page. For 2026-27 the maximum contribution base is set as an annual figure of $270,830, replacing the quarterly cap of $62,500 that applied in 2025-26. Our employer super contribution service can check your payroll settings.
How did the old super guarantee charge work?
For earnings paid up to 30 June 2026, super was due quarterly. The final quarterly due date was 28 July 2026 for the April to June 2026 quarter. If you missed a due date, paying the fund late did not clear the problem. You had to lodge an SGC statement with the ATO, due one month after the quarterly due date, through Online services for business.
The ATO says the old SGC has three parts:
- SG shortfall – calculated on salary and wages, including overtime, plus any choice liability capped at $500.
- Nominal interest – 10% a year, from the start of the quarter, not the due date.
- Administration fee – $20 per employee, per quarter.
The old SGC is not tax deductible. If you did not lodge, or lodged late, the ATO could add a Part 7 penalty of up to 200% of the SGC, although it can remit that penalty depending on your compliance history.
What changed under Payday Super from 1 July 2026?
From 1 July 2026, super must be received by the fund within 7 business days after each payday. Super is calculated on qualifying earnings, which include ordinary time earnings, commissions and salary sacrificed amounts. Employers no longer lodge SGC statements. The ATO uses payroll and fund data to assess the charge itself.
The four parts of the new charge
The ATO’s page on the new super guarantee charge sets out four components for each payday:
| Component | How it is worked out |
|---|---|
| Individual final SG shortfall | Super still unpaid at 12% after counting on-time and late contributions |
| Notional earnings | GIC rate applied to the base shortfall, compounding daily, from the day after the 7 business day window until the shortfall is paid or the ATO assesses |
| Administrative uplift | Starts at 60% of the shortfall plus notional earnings; can be reduced for good compliance history and voluntary disclosure |
| Choice loading | 25% of contributions where choice of fund rules were not followed, capped at $1,200 per notice period |
The GIC rate for October to December 2026 is 11.51% a year, per the ATO GIC rates page. The charge is payable on the day the ATO assesses it. If it is not paid within 28 days, the ATO issues a notice to pay. A late payment penalty of 25% of the outstanding charge, or 50% if you had the same penalty in the previous 24 months, can follow and cannot be remitted.
Is the super guarantee charge tax deductible?
This is where the two systems differ most. Old-regime SGC for quarters up to 30 June 2026 is not deductible. That includes the shortfall, the nominal interest and the $20 fee. Under Payday Super, the ATO says the charge is deductible, but GIC and late payment penalties are not. Read our guide on ATO overdue tax interest for how GIC builds up.
Can directors be personally liable for unpaid super?
Yes. According to the ATO, a director of a company that fails to pay an SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount. The ATO can issue a director penalty notice, start recovery proceedings, or hold back the director’s own tax refunds. Our article on director penalty notices for unpaid super covers the options in detail.
Worked example: an old-regime SGC for the March 2026 quarter
Riverside Pty Ltd missed super for one employee for 1 January to 31 March 2026. The due date was 28 April 2026. It lodged its SGC statement on 28 May 2026.
Shortfall: salary and wages of $20,000 x 12% = $2,400.
Nominal interest: 1 January to 28 May 2026 is 31 + 28 + 31 + 30 + 28 = 148 days. $2,400 x 10% x 148 / 365 = $97.32.
Administration fee: $20.
Total SGC: $2,400 + $97.32 + $20 = $2,517.32. None of it is deductible. Had Riverside paid $2,400 to the fund by 28 April, that amount would have been a deduction.
What should you do if super is unpaid?
For earnings paid from 1 July 2026, the ATO’s advice on missed Payday Super contributions is to pay the outstanding amount to the employee’s fund as soon as possible. Even a partial payment reduces the charge. You can also lodge a voluntary disclosure before you receive a notice of assessment, which can reduce the administrative uplift.
- Find the gap – reconcile each pay run against fund receipts.
- Pay the fund – send the missing amount with full member details.
- Consider disclosure – lodge a voluntary disclosure before an assessment arrives.
- Old quarters – for earnings to 30 June 2026, lodge any outstanding SGC statement now to limit Part 7 exposure.
In the first year of Payday Super, from 1 July 2026 to 30 June 2027, the ATO treats employers who correct shortfalls within 28 days after the end of the quarter as lower risk. If you have already received an ATO letter, our ATO disputes team can help you respond. Our page on superannuation obligations for employers has a wider checklist.
Rule of thumb: Treat super as part of each pay run, not a quarterly bill. If a contribution misses the 7 business day window, pay the fund straight away and keep evidence of when you did it.
Common mistakes with unpaid super
- Using the old due dates – quarterly deadlines ended with the April to June 2026 quarter.
- Calculating on the wrong base – commissions and salary sacrifice are part of qualifying earnings.
- Assuming the charge is never deductible – the answer depends on whether the earnings were paid before or after 1 July 2026.
- Ignoring incomplete data – a payment the fund cannot allocate may not count as received.
- Leaving old SGC statements unlodged – Part 7 penalties of up to 200% can still apply to those quarters.
FAQ about unpaid super penalties
What is the penalty for paying super late in Australia?
For pay days from 1 July 2026, late or unpaid super attracts the super guarantee charge. It is made up of the unpaid super, notional earnings at the general interest charge rate, an administrative uplift of up to 60% and, where relevant, a choice loading. If the charge is still unpaid after a notice to pay, a further 25% or 50% penalty can apply.
Is the super guarantee charge tax deductible?
It depends on the period. The old charge for quarters up to 30 June 2026 is not tax deductible. Under the Payday Super rules that started on 1 July 2026, the ATO says the super guarantee charge itself is deductible, but the general interest charge and late payment penalties on top of it are not deductible.
Can I still pay late super straight to the fund?
Yes, under Payday Super the ATO says you should fix a missed contribution as soon as possible by paying the outstanding amount to the employee’s fund. A late payment reduces the charge, because notional earnings stop once the shortfall is paid. You can also lodge a voluntary disclosure before the ATO issues a notice of assessment.
Do I still need to lodge an SGC statement?
For quarters up to 30 June 2026, yes. The SGC statement is due one month after the quarterly due date, so a missed April to June 2026 payment needed a statement by 28 August 2026. From 1 July 2026 employers no longer lodge SGC statements. The ATO assesses the charge, and a voluntary disclosure is optional.
Can directors be personally liable for unpaid super?
Yes. The ATO says a director of a company that does not pay its super guarantee charge in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount. The ATO can recover it through legal action or by holding back the director’s own tax refunds, so early action matters.
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Nanak Accountants can review your payroll and fund payments, work out any shortfall, prepare old-regime SGC statements or Payday Super voluntary disclosures, and deal with the ATO for you. Call 1300 626 258 or ask about our employer super contribution service.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO Payday Super, super guarantee charge, super guarantee penalties, due dates, super guarantee rates and GIC rates pages on 7 October 2026. Rates and thresholds change, so confirm the current position before acting.
