ATO ramps up scrutiny of historical superannuation guarantee compliance

We are seeing a significant increase in Australian Taxation Office (ATO) reviews of historical superannuation guarantee (SG) compliance. More employers are being asked to show they met their obligations in earlier periods. In our recent experience, these reviews commonly cover up to five years of SG compliance, through to 30 June 2026.

This increased activity is consistent with the ATO's greater access to Single Touch Payroll and superannuation fund data, which it uses to identify employers that may not have met their SG obligations.

Against this backdrop of increased scrutiny of historical SG compliance, Payday Super commenced on 1 July 2026. While the ATO's Practical Compliance Guideline PCG 2026/1 Payday Super – first year ATO compliance approach adopts a more supportive approach for employers genuinely attempting to comply with the new regime, that approach should not be assumed to extend to historical SG obligations through to 30 June 2026.

All employers may be exposed to historical SG scrutiny

Importantly, ATO compliance activity is not limited to employers with significant or systemic SG underpayments. We understand that employers may also receive compliance correspondence where historical contributions were made only slightly after the applicable quarterly deadline.

Under SG legislation applying to earnings up to 30 June 2026, an SG contribution generally needed to be received by the employee's superannuation fund by the statutory due date, being 28 days after the end of the quarter. A contribution received after that date can therefore give rise to a superannuation guarantee charge (SGC) liability, even where the employer subsequently paid the employee's full SG entitlement. The ATO also confirms that a contribution is only considered paid when it is received by the employee's super fund. This can be particularly relevant where payments were made through a clearing house before the deadline but reached the fund after the due date.

Small delays can have significant consequences

This makes historical payment timing particularly important. Where SG was paid late, employers may have been required to lodge an SGC statement, and the consequences can be materially greater than the amount of the original late contribution. For historical quarterly SG, nominal interest accrues at 10% per annum from the first day of the relevant quarter to the date the statement is lodged. This means that where historical late payments have not been reported, nominal interest can continue to accrue until the relevant SGC statement is lodged.

The historical SGC also includes a $20 administration fee per employee per quarter, with the SG shortfall calculated by reference to salary and wages, rather than ordinary time earnings. Importantly, SGC relating to the historical quarterly regime is also non-deductible for income tax purposes, further increasing the potential cost of even relatively minor historical SG compliance failures.

Accordingly, even employers that consider themselves fully compliant because all SG contributions were ultimately paid should review whether historical payments were received by employees' super funds on time.

Why employers should review their position now

With the ATO’s focus on historical SG compliance expected to continue alongside Payday Super, now is a good time to review your position. Start with your historical contribution payment dates, any potential underpayments, employee and contractor SG eligibility, earnings bases, and the accuracy of your payroll and superannuation data.

Taking action now can help you identify and address historical issues before you receive an ATO compliance letter or enquiry. It is also an opportunity to check that your systems, processes and governance support your ongoing obligations under Payday Super.

If you would like to understand your SG position and next steps, talk to our team. We can work with you on targeted SG health checks, historical data reviews and remediation, responses to ATO enquiries, and ongoing Payday Super compliance.