Unpaid super amounts from the pre-PayDay Super era are attracting up to 200% in penalties thanks to the legacy Part 7 penalty. Review your super outgoings urgently and lodge the SGC form for late or unpaid super contributions.
Stark contrast: PayDay Super rules vs. legacy Part 7 penalty
When PayDay Super rolled out on 1 July 2026, employers were warned that missing the 7-day window for ensuring super contributions landed in employees’ funds could lead to heavy penalties.
However, the ATO has been seen taking a softer, compliance approach thus far, focusing more heavily on intentional non-compliance rather than good-faith transition errors.
In stark contrast, is its heavy-handed response to unpaid super amounts from the Pre-PayDay Super era.
Not only is the ATO able to ‘see’ late and unpaid super contributions from before 1 July 2026—thanks to Single Touch Payroll—it has been utilising that visibility to intervene proactively and hit businesses with up to 200% in late fees as part of the legacy Part 7 penalties
Related: Payday Super is about to get REALLY costly for you, if you overlook these 3 things
Unpaid Super pre-1 July 2026 under the microscope: Our 3-part advice to employers
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We want employers to be aware that unpaid super from before 1 July is very much under the ATO’s microscope and could attract heavy penalties.
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As such, we encourage reviewing your super outgoings to identify any unpaid super amounts and lodging a SGC form as soon as possible.
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Most importantly, if you get a penalty notice or other communications from the ATO, do not ignore them.
Taking meaningful actions can shape the outcome significantly:
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Keep communication lines with the ATO open and respond to their requests proactively.
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And work with your trusted tax professional to work out what’s late and what explanations need to be provided to the ATO where applicable.
When it comes to old unpaid Super, don’t wait for the ATO to find the problem. Review your super contributions urgently and proactively lodge your SGC form as necessary.
Need help with Superannuation compliance? Contact us today.
If you've received an ATO notice relating to unpaid SGC or a Part 7 penalty, we can help you understand what the notice means, how the liability has been calculated, and what steps you can take next.
Our dedicated tax team can also help manage your payroll and superannuation processes on an ongoing basis and help you stay compliant in the long run.
If you wish to discuss your particular circumstances in detail, please call us on 02 9238 1188 or get in touch with us here.
This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
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