Payday Super SGC Calculator

Law starts 1 July 2026

Australia Payday Super SGC Calculator

Pay super within 7 business days of each payday — or face the new Super Guarantee Charge. See the cost.

Heads up: Payday Super replaces the quarterly system entirely from 1 July 2026. Super must reach an employee's fund within 7 business days of each payday — not 28 days after quarter-end. This calculator estimates the new Super Guarantee Charge (SGC) if a payment is late.

From 1 July 2026, every Australian employer — regardless of size — must pay super at the same time as wages, with contributions landing in the employee's fund within 7 business days. Miss that window even once and the new Super Guarantee Charge applies automatically: it's no longer a flat quarterly admin fee, it's daily compounding interest plus an administrative uplift, assessed by the ATO per payday. This calculator shows what a late payment could actually cost you.

$
Gross wages for the pay period (SG rate is 12%).
Please enter the qualifying earnings to calculate.
› Adjust the GIC rate or uplift % (optional)
%
%
Estimated total Super Guarantee Charge
$0
If this payment isn't corrected before assessment.
SG shortfall (12%)
$0
Notional interest
$0
Administrative uplift
$0
vs. paying on time
$0 extra
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Missing earnings figure

Please enter the qualifying earnings before calculating — it's the required field.

What changes on 1 July 2026

The old system gave employers until 28 days after each quarter to pay super — meaning contributions could legally sit unpaid for up to nearly four months. Payday Super closes that gap completely: from 1 July 2026, super must reach the employee's fund within 7 business days of every single payday. There's no small-business exemption, no phase-in, and no grace period — a sole trader's first hire is on the same clock as a multinational.

The new SGC formula (per late payday)
SG shortfall = 12% × qualifying earnings (less any contributions made)
Notional interest = shortfall × GIC rate × (days late ÷ 365), compounding daily
Administrative uplift = up to 60% × (shortfall + interest)
Total SGC = shortfall + interest + uplift
Worked example — $3,000 qualifying earnings, 14 days late, GIC 11.43%: shortfall = $360. Interest ≈ $360 × 11.43% × (14/365) ≈ $1.58. Uplift = 60% × $361.58 ≈ $216.95. Total SGC ≈ $578.53 — on a $360 super payment.

Why the uplift hurts so much

The administrative uplift can be up to 60% of the shortfall plus interest — effectively a penalty layered on top of the super you already owed. The good news: voluntarily disclosing a shortfall to the ATO within 30 days can reduce that uplift by roughly 40%, and a clean 24-month compliance history can reduce it further. Acting fast and disclosing proactively is the single biggest lever you have once a payment is late.

First-year transitional relief — but it's not an amnesty

The ATO's Practical Compliance Guideline (PCG 2026/1) sets a risk-based approach for the first year, 1 July 2026 to 30 June 2027. Employers who make genuine efforts to pay on time and correct errors quickly — landing at "low risk" — are unlikely to face enforcement, even if a payment slips occasionally. But this only covers the first year, and it rewards genuine effort, not inaction. From 1 July 2027, the full penalty regime applies with no transitional leeway.

SystemOld (pre-1 July 2026)New (Payday Super)
Payment frequencyQuarterly (28 days after quarter)Every payday (7 business days)
SGC interestFlat 10% p.a.GIC rate, daily compounding (~11.4%)
Admin penalty$20/employee/quarterUp to 60% uplift on shortfall + interest
SGC tax treatmentNot deductibleDeductible (penalties still aren't)

The other penalty layer: late-payment penalties

If the SGC itself remains unpaid 28 days after the ATO issues an assessment, a further 25% (or 50% for repeat non-compliance) penalty applies on top — and unlike the SGC itself, this penalty layer is not tax-deductible. Director Penalty Notices can also make company directors personally liable for unpaid amounts, a liability that isn't dischargeable in bankruptcy.

For broader payroll and business cash flow planning, see the employee cost calculator, quarterly estimated tax calculator, and superannuation calculator for the employee side of growth projections.

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Frequently asked questions

When does Payday Super start?+
1 July 2026. From that date, every Australian employer must pay super contributions within 7 business days of each payday, replacing the old quarterly payment system entirely. There's no small-business exemption or phase-in period.
What counts as "qualifying earnings"?+
Qualifying earnings (QE) is a broader measure than the old Ordinary Time Earnings (OTE) used for quarterly super. It generally captures most salary and wage payments made on a given payday. Employers should review their pay codes before 1 July 2026 to make sure no payment types are misclassified.
Is the new SGC tax deductible?+
Yes — a change from the old system. Under Payday Super, the SGC (shortfall, interest, and administrative uplift) is tax-deductible. However, the separate late-payment penalty (25% or 50%, applied if the SGC itself remains unpaid 28 days after assessment) is not deductible.
Does voluntary disclosure actually reduce the penalty?+
Yes. Disclosing a shortfall to the ATO within 30 days of the late payment can reduce the administrative uplift by roughly 40%. A clean compliance history (no ATO-initiated assessment in the past 24 months) can reduce it further on a cascading basis.
Is there any leeway in the first year?+
Yes, but it's limited. The ATO's PCG 2026/1 sets a risk-based compliance approach from 1 July 2026 to 30 June 2027: employers genuinely trying to comply and fixing errors quickly are treated as low risk. It is not a blanket amnesty, and full enforcement applies from 1 July 2027 onward.
What's the "choice loading" penalty?+
It's a separate penalty — 25% of contributions for any payday where the employer didn't follow choice-of-fund rules (e.g. paying a new employee's super into the wrong fund without proper process), capped at $1,200 per notice period.
Can directors be held personally liable for unpaid SGC?+
Yes. The ATO can issue Director Penalty Notices (DPNs) holding company directors personally liable for unpaid super amounts, and this liability generally isn't dischargeable in bankruptcy. Persistent or fraudulent non-payment can also attract criminal sanctions.
This calculator provides general estimates only and is not financial, legal, or tax advice. It models the core Super Guarantee Charge components under Payday Super using the GIC rate published for the quarter beginning 1 July 2026 (subject to quarterly change) and a standard administrative uplift. It does not model choice loading penalties, Director Penalty Notices, or the full ATO PCG 2026/1 risk assessment. Confirm your specific obligations with the ATO or a registered tax/payroll professional.

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