About the Super Guarantee Charge (SGC) Penalty Estimator
Under Payday Super, paying super even a little late has a cost. If a contribution is not received by an employee's fund within 7 business days of payday, the employer becomes liable for the super guarantee charge (SGC) — a redesigned charge that is more than the super you would have paid on time. The SGC Penalty Estimator helps employers understand the components of that charge and get a ballpark figure for a late payday. This tool is for employers, bookkeepers and advisers who have missed, or are worried about missing, a Payday Super deadline. It estimates the SG shortfall, the administrative uplift and the potential Part 7 penalty, while being transparent about the figures the ATO has not yet finalised.
What is the Super Guarantee Charge (SGC) Penalty Estimator?
The SGC Penalty Estimator breaks the Payday Super super guarantee charge into its parts and estimates the total for a single late payday. From 1 July 2026 the SGC for a qualifying-earnings day is made up of the SG shortfall (the unpaid super), notional earnings (interest to compensate the employee), an administrative uplift, and — where the choice-of-fund rules are not met — a choice loading. Separately, a Part 7 penalty of 25% or 50% of the SGC can apply. Because the ATO has not yet published the new-system notional-earnings and general interest charge (GIC) rates — the governing rulings LCR 2026/D3 and PCG 2026/1 are still in draft — this tool takes the notional-earnings rate as an input you supply and clearly flags what it excludes. It is a planning aid to show the scale and structure of the charge, not a substitute for an ATO assessment.
How to Use This Calculator
- 1Enter the SG shortfall: Input the unpaid super guarantee for the payday (for example, 12% of the qualifying earnings you did not pay on time).
- 2Enter a notional earnings rate: If you know the current rate from the ATO, enter it; otherwise leave it at zero and treat notional earnings as not yet estimated.
- 3Enter the days late: The number of days the super is overdue, used with the rate to estimate notional earnings.
- 4Indicate first assessment: Select whether this is your first ATO-initiated SGC assessment since 1 July 2026 — if so, the administrative uplift is 40% instead of 60%.
- 5Indicate prior penalties: Select whether you have prior SGC penalties, which sets the Part 7 penalty at 25% or 50%.
- 6Review the estimate: The tool shows the shortfall, notional earnings, administrative uplift, an SGC subtotal and the potential Part 7 penalty.
Worked Australian Example
Practical Example
Priya's payroll misses the 7-business-day deadline on a payday, leaving a $300 super shortfall for one employee, paid 30 days late. She checks the ATO for the current notional-earnings rate and enters it (in this example, 10% p.a.), with 30 days late. The estimator calculates notional earnings of about $2 (\$300 × 10% × 30/365). Because this is Priya's first ATO-initiated SGC assessment since 1 July 2026, the administrative uplift is 40% of the shortfall plus notional earnings — about $121. That gives an estimated SGC subtotal of roughly $423. As she has no prior penalties, a Part 7 penalty of 25% of the SGC (about $106) could also apply at the ATO's discretion. Priya notes that, unlike the old quarterly SGC, this Payday Super SGC is tax-deductible — but the cheapest outcome by far would have been paying the $300 on time.
How Our Super Guarantee Charge (SGC) Penalty Estimator Works
The Payday Super super guarantee charge for a qualifying-earnings day is built from these components: 1. **SG shortfall** — the unpaid super for the payday (the amount you should have paid at 12% of qualifying earnings). 2. **Notional earnings** — interest to compensate the employee for lost fund earnings. **Estimate = shortfall × rate × days ÷ 365.** The ATO has not finalised the new-system rate, so this tool uses the rate you enter. 3. **Administrative uplift** — to reflect the cost of enforcement, initially **60% of the shortfall plus notional earnings**, reduced to **40%** if it is your first ATO-initiated SGC assessment since 1 July 2026. 4. **Choice loading** — an extra amount if you did not meet the choice-of-fund requirements (not modelled here). **Estimated SGC subtotal = shortfall + notional earnings + administrative uplift.** On top of the SGC, a **Part 7 penalty of 25% or 50% of the SGC** may apply depending on your penalty history, and **general interest charge (GIC) compounds daily** on the unpaid SGC until it is paid. This estimator excludes GIC and choice loading and relies on the rate you provide, so treat it as indicative. One genuine benefit under the new rules: the Payday Super SGC relating to qualifying-earnings days from 1 July 2026 is **tax-deductible**, unlike the old quarterly SGC. Always confirm the exact charge with the ATO or a registered tax or BAS agent.
When to Use This Calculator
Use this estimator when a Payday Super deadline has been, or might be, missed. **Immediately after a missed payday**, to understand the likely size of the charge and prioritise paying the super and lodging with the ATO quickly. **When budgeting for a known late payment**, to see how the administrative uplift and potential penalty multiply the original shortfall. **When deciding whether to voluntarily disclose**, since early, first-time disclosure attracts the lower 40% uplift. **When advising clients**, to illustrate why on-time payment is far cheaper than the SGC. It suits employers, bookkeepers and tax or BAS agents. Because several rates are still in draft, check ato.gov.au for the finalised figures before relying on any number, and pair this with the Payday Super Calculator to avoid the charge in the first place.