The Super Guarantee Charge (SGC) is a penalty mechanism that applies when an employer fails to pay the correct Super Guarantee (SG) contributions by the due date. The SGC is not a fine — it is a charge designed to compensate employees for missing contributions and cover administrative costs. However, the SGC is significantly more expensive for employers than simply paying on time.
When Does the SGC Apply?
The SGC applies when an employer:
- Fails to pay SG contributions by the quarterly due date
- Pays less than the required amount (currently 11.5% of OTE)
- Pays to the wrong fund (not a complying super fund)
Quarterly SG due dates:
| Quarter | Period | Due date |
|---|---|---|
| Q1 | 1 July – 30 September | 28 October |
| Q2 | 1 October – 31 December | 28 January |
| Q3 | 1 January – 31 March | 28 April |
| Q4 | 1 April – 30 June | 28 July |
Missing a due date by even one day triggers the SGC framework.
How the SGC Is Calculated
The SGC has three components:
- The shortfall amount: The underpaid super, calculated on a broader base than OTE. The SGC base includes salary or wages (which is broader than OTE — ordinary time earnings) and may include some payments excluded from OTE
- Nominal interest: 10% per annum on the shortfall, from the start of the relevant quarter (not the due date)
- Administration component: $20 per employee, per quarter
Key difference from ordinary super: Because the SGC is calculated on total wages (not just OTE), it is typically higher than what the employer would have owed if they had paid on time. Late payment always costs more.
Example: Cost of Late Payment
- Employee’s quarterly OTE: $20,000
- SG owed: $2,300 (11.5%)
- Employer pays 3 months late
SGC calculation:
- SGC shortfall (on broader wages base, assume $21,000): $2,415
- Nominal interest (10% p.a. for ~6 months): $120.75
- Admin fee: $20
- Total SGC: ~$2,556 vs $2,300 paid on time
The employer must also lodge an SGC statement with the ATO and cannot claim a tax deduction for the SGC (unlike ordinary SG contributions, which are deductible).
How to Report Unpaid Super to the ATO
Employees who believe their super has not been paid can:
- Check myGov — the ATO online services show super contributions reported by employers
- Contact the employer directly and ask for evidence of payment
- Lodge a report with the ATO via the online tip-off form at ato.gov.au or call 13 10 20
The ATO investigates underpaid super claims and can demand payment of the SGC from non-compliant employers. The ATO has criminal prosecution powers for deliberate non-compliance.
SGC Amnesty (Historical — Now Closed)
The government ran a Super Guarantee Amnesty from September 2020 to September 2020, allowing employers to self-disclose historical underpayments without the administration fee and with tax deductibility. This amnesty is now closed. Employers who discover historical underpayment should seek advice — voluntary disclosure to the ATO remains preferable to audit.
Director Liability
Company directors can be held personally liable for unpaid SGC if the company fails to meet its obligations. The ATO can issue a Director Penalty Notice (DPN) making directors personally responsible for the SGC amount. This applies even if the director was not aware of the non-payment.
From 1 July 2026: Payday Super
From 1 July 2026, the SG must be paid each payday (not quarterly). The SGC framework will be updated accordingly — employers who miss a payday payment will incur SGC from that payday. See Payday Super 2026.
For more: Super Guarantee Rate Schedule, Ordinary Time Earnings, Super for Part-Time Workers, Payday Super 2026. For advice on your situation, speak with a licensed financial adviser via MoneySmart.