What happens if my business doesn't pay super guarantee on time?

Super guarantee (SG) is the super you must pay for your eligible employees. If it isn’t paid on time and in full, you become liable for the super guarantee charge (SGC), which costs more than the super itself. For companies, unpaid SGC can also become a personal debt for the directors.

The rules changed on 1 July 2026, so which rules apply depends on when you paid the wages.

Payday Super has started

Payday Super applies from 1 July 2026. The ATO says the laws for it, including the Treasury Laws Amendment (Payday Superannuation) Act 2025, were passed by Parliament and the measure is now law. The Federal Register of Legislation shows that Act received Royal Assent on 6 November 2025.

The ATO describes the changeover like this:

• Earnings paid up to 30 June 2026: the quarterly rules apply. The final quarterly payment, for the April to June 2026 quarter, was due in employees’ super accounts by 28 July 2026.
• Earnings paid from 1 July 2026: Payday Super applies, based on the qualifying earnings you pay.

The current due dates under Payday Super

The ATO says super must be received by your employee’s super fund within 7 business days after the day you pay them. The ATO calls payday the “qualifying earnings day” or QE day.

There are some exceptions:

• New employees or a new fund: the contribution must be received within 20 business days after the relevant QE day.
• Out-of-cycle payments: the contribution must be received within 7 business days after the employee’s next regular (not out-of-cycle) payday.

A contribution only counts as received when it reaches the fund with all the information needed to allocate it to the employee’s account. A business day excludes Saturdays, Sundays and public holidays that apply to a whole state or territory.

If you miss a Payday Super contribution

The super guarantee charge

If you don’t pay super correctly, the ATO says it will calculate your SGC and send you a notice of assessment. You don’t lodge an SGC statement for these periods. The SGC is made up of:

• the shortfall: the unpaid super for each employee
• notional earnings: interest on the shortfall, calculated at the general interest charge rate and compounding daily
• an administrative uplift: initially 60% of the shortfall and notional earnings
• choice loading, if it applies: 25% of the contributions for a payday where you didn’t follow the choice of fund rules, up to $1,200 for each notice period.

The administrative uplift can be reduced. The ATO says it reduces it by 20 percentage points if you haven’t had an ATO-initiated SGC assessment in the 2 years up to the relevant QE day, and by up to 40 percentage points if you make a voluntary disclosure before you are assessed, depending on how quickly you disclose. Both reductions can apply, which can bring the uplift down to 0%.

When the SGC is due

The ATO says the due date for payment is the day the assessment is made. If you don’t pay within 28 days of the assessment, it sends you a written Notice to Pay. If you don’t pay the amount in that notice within 28 days, you become liable for a late payment penalty.

Tax deductions

The ATO says you can claim a deduction for all components of the SGC relating to QE days from 1 July 2026 onwards. You can’t claim a deduction for GIC on a late SGC payment or for late payment penalties.

The ATO’s approach in 2026–27

The ATO says it will take a supportive approach in the first year of Payday Super. It won’t review employers who are paying super for each payday and fixing errors quickly. It will focus on employers who aren’t trying to make the change, aren’t fixing errors or aren’t paying super at all.

Wages paid up to 30 June 2026: the SGC statement

For quarters up to 30 June 2026, if super wasn’t received by the quarterly due date, you must lodge an SGC statement and pay the SGC to the ATO. The due date for both is one calendar month after the SG due date.

Quarter	SG due date	SGC statement and payment due
1 July – 30 September	28 October	28 November
1 October – 31 December	28 January	28 February
1 January – 31 March	28 April	28 May
1 April – 30 June	28 July	28 August

Under these rules the SGC includes the SG shortfall, nominal interest of 10% a year from the start of the quarter, and an administration fee of $20 per employee per quarter. The ATO says this SGC is not tax deductible. The late payment offset is not available for the final June 2026 quarter.

If you don’t lodge the SGC statement by the due date, the ATO says a Part 7 penalty will apply, up to a maximum of 200% of the SGC. GIC applies to SGC paid late and, if incurred on or after 1 July 2025, is not deductible.

Director penalty exposure

The SGC is one of the company debts covered by the director penalty regime, along with PAYG withholding and GST. If a company doesn’t pay its SGC, the ATO can issue a director penalty notice and then recover the amount from the directors personally.

For SGC, the ATO says that if the amounts are reported by the SGC due date, the penalty can be remitted within 21 days by paying in full, appointing an administrator, appointing a small business restructuring practitioner or winding up the company. If they are reported late or not at all, only full payment remits the penalty. Ask your registered tax agent how this applies to super for earnings paid from 1 July 2026.

The ATO can also direct an employer to pay overdue SGC within a set period. It says failing to comply with the direction is a criminal offence.

See what is a director penalty notice for how director penalties work.

Step by step

1. Check which rules apply. Earnings paid up to 30 June 2026 fall under the quarterly rules. Earnings paid from 1 July 2026 fall under Payday Super.
2. Pay the fund as soon as you can. The ATO says that, unless you have already been assessed, you should pay the outstanding super to the employee’s fund first. Even part payments reduce the SGC.
3. Consider a voluntary disclosure. For Payday Super periods, a voluntary disclosure statement made before you are assessed can reduce the charge.
4. Lodge any SGC statement you owe. For quarters up to 30 June 2026, lodge the SGC statement and pay the SGC.
5. Pay any SGC assessment promptly. Under Payday Super the SGC is due on the day of the assessment. If you can’t pay, contact the ATO about a payment plan, noting that a plan won’t prevent late payment penalties.
6. Fix your payroll process. Make sure each pay run triggers a super payment in time to reach the fund within 7 business days.
7. Get advice. Talk to your registered tax or BAS agent, especially if you are a company director.

Important things to know

• Speed matters. The ATO’s example shows that paying quickly and disclosing can reduce the charge a great deal.
• The fund must receive it. Sending the payment is not enough. It must reach the fund with the details needed to allocate it within the deadline.
• Unpaid super is a priority for the ATO. The ATO lists unpaid GST, PAYG withholding and employee super as a reason it is more likely to take firmer action.
• Directors carry personal risk. Unpaid SGC can become a director’s personal debt.
• Cash flow planning has changed. Paying super every payday means super is no longer a quarterly cost. For the wider picture if you are behind, see what happens if you can’t pay the ATO.