What Is the Super Guarantee Amnesty?

The Superannuation Guarantee amnesty was originally introduced by the Australian Government in 2018 as a time-limited program allowing employers to voluntarily disclose historical unpaid superannuation contributions. During the amnesty period, employers could avoid certain penalties and claim tax deductions for catch-up super payments that would not normally be available through the standard Superannuation Guarantee Charge (SGC) process.

Under the standard SGC rules, when the ATO discovers unpaid super through an audit or compliance review, employers must pay the shortfall plus an administration fee and interest. Crucially, these SGC payments are not tax deductible — meaning employers pay the penalty from after-tax income. The amnesty changed this by making the catch-up contributions tax deductible, significantly reducing the true cost of coming forward.

Although the original amnesty window closed in September 2020, the ATO still offers a Voluntary Disclosure program. Employers who proactively disclose unpaid super before the ATO starts an audit can access reduced penalties and more favourable treatment. This makes voluntary disclosure one of the most important strategies for managing super compliance risk in FY 2025-26.

With the Super Guarantee rate at 12% for FY 2025-26 and rising to 12.5% from 1 July 2026, the cost of non-compliance is growing. Use our superannuation calculator to understand your ongoing SG obligations and avoid falling behind on contributions.

How the Superannuation Guarantee Charge Works

When an employer fails to pay the required superannuation guarantee amount by the quarterly due date, the ATO applies the Superannuation Guarantee Charge (SGC). The SGC is designed to be more punitive than simply paying the super contributions on time, creating a strong incentive for timely compliance.

The SGC has three components: the unpaid super shortfall (based on the employee's ordinary time earnings), nominal interest of 10% per annum calculated from the start of the relevant quarter, and an administration fee of $20 per employee per quarter. These costs add up quickly, especially for businesses with multiple employees or several quarters of non-compliance.

For example, if you missed paying super for one employee earning $60,000 per year for a full financial year, the SGC would include the unpaid contributions ($7,200 at 12%), interest on the late payment, and administration fees for four quarters. The total penalty could easily exceed $8,000 — and none of this is tax deductible under standard rules.

Use our take home pay calculator to understand what your employees expect to receive, including the super component of their total compensation package. This helps you budget accurately for SG obligations.

Who Qualifies for Voluntary Disclosure in FY 2025-26?

The ATO accepts voluntary disclosures from any employer who has missed or underpaid superannuation guarantee contributions. There is no minimum or maximum amount of unpaid super required. Small businesses, sole traders, and large corporations alike can access the voluntary disclosure framework.

To qualify, you must contact the ATO before they contact you about your super obligations. If the ATO has already started an audit, compliance review, or data-matching investigation, voluntary disclosure benefits may not be available. The key is to act before the ATO identifies the shortfall independently.

Voluntary disclosure is particularly relevant for employers who have recently become aware of a calculation error, misinterpreted the SG rules (for example, incorrectly treating a contractor as not entitled to super), or experienced administrative failures that caused missed payments. The ATO generally treats these cases more favourably than deliberate non-compliance.

If you are unsure whether you have met your SG obligations, use our income tax calculator to model the financial impact of catch-up contributions. Understanding the numbers helps you decide whether voluntary disclosure makes financial sense for your business.

How to Make a Voluntary Disclosure to the ATO

Making a voluntary disclosure for unpaid super is a straightforward process. Start by calculating the exact amount of super you owe for each affected employee, broken down by quarter. You will need payroll records, contractor agreements, and any correspondence about employment arrangements.

Next, lodge your voluntary disclosure through the ATO's Business Portal, your registered tax agent, or by contacting the ATO directly. Provide a detailed breakdown of the unpaid amounts, the quarters affected, and the reason for the shortfall. The ATO will assess your disclosure and calculate the SGC, including any reductions available under their voluntary disclosure policy.

Once the ATO issues a notice of assessment, you have 21 days to pay the SGC in full. Unlike standard SGC, the contributions paid under voluntary disclosure are tax deductible — meaning you can claim them as a business expense in your income tax return. This makes voluntary disclosure significantly cheaper than waiting for the ATO to discover the shortfall through an audit.

If you cannot pay the full amount within 21 days, contact the ATO to discuss a payment plan. The ATO offers payment arrangements for businesses experiencing genuine financial difficulty, although interest will continue to accrue on the outstanding balance.

Penalties for Failing to Disclose Unpaid Super

Employers who do not voluntarily disclose unpaid super face significantly higher costs. When the ATO discovers the shortfall through an audit or data-matching program, the full SGC applies with no reductions. Furthermore, the ATO can apply additional penalties of up to 200% of the super shortfall under Part 7 of the Superannuation Guarantee (Administration) Act 1992.

The ATO uses extensive data-matching capabilities to identify employers who may have unpaid super. This includes matching Single Touch Payroll (STP) data with super fund records, analysing industry benchmarks, and cross-referencing tax return data. If you are not meeting your SG obligations, the ATO is increasingly likely to identify the gap through its automated systems.

Employers who deliberately avoid super obligations also face director penalty notices, personal liability for unpaid super (including for company directors), and potential garnishee notices on business bank accounts. In serious cases, the ATO can refer matters to the Australian Federal Police for criminal prosecution.

With the Medicare levy and other statutory charges adding to the overall tax burden, the cost of non-compliance extends beyond just the SGC. The ATO's focus on super compliance has intensified, with dedicated teams targeting employers in high-risk industries such as hospitality, construction, and cleaning services.

Super Guarantee Rate Timeline: What Employers Need to Know

The Super Guarantee rate has increased steadily over recent years and will continue to rise. Understanding this timeline helps employers budget for future obligations and avoid unintentional shortfalls caused by failing to update payment systems for rate changes.

For FY 2025-26, the SG rate is 12%. From 1 July 2026, it will increase to 12.5%, and it is legislated to reach 13% by 1 July 2027. Each rate change increases the minimum super contribution required for each employee, which means payroll systems must be updated accordingly every 12 months.

Our Payday Super guide explains the new real-time super payment obligations that take effect from July 2026. From that date, employers will need to pay super at the same time as salary and wages, rather than the current quarterly schedule. This change significantly reduces the window for unintentional non-compliance.

Frequently Asked Questions

Is the SG amnesty still available in 2025-26?

The original Super Guarantee amnesty period ended on 7 September 2020. However, the ATO continues to operate a voluntary disclosure framework that provides many of the same benefits, including tax deductibility for catch-up contributions and reduced administration fees. Employers should make voluntary disclosures as soon as they identify any shortfall to maximise these benefits.

Can I claim a tax deduction for super contributions made under voluntary disclosure?

Yes, this is one of the key advantages of voluntary disclosure. Unlike standard SGC payments (which are not tax deductible), contributions made under voluntary disclosure are treated as normal employer super contributions and are fully tax deductible as business expenses. This can save employers 25% to 30% on the total cost of the catch-up payment, depending on the company tax rate.

Does the amnesty apply to contractors and gig workers?

It depends on whether the worker is classified as an employee or contractor under super guarantee law. If you pay a contractor under a contract that is principally for their labour, you may still need to pay super. The ATO's voluntary disclosure framework applies to any super shortfall, regardless of whether it relates to employees or contractors mistakenly treated as not entitled to super.

What happens if I cannot afford to pay the SGC in 21 days?

Contact the ATO immediately to discuss a payment plan. The ATO offers tailored payment arrangements based on your financial circumstances. While interest continues to accrue on outstanding balances, entering a payment plan prevents escalation to more serious enforcement actions such as director penalty notices or garnishee orders. The ATO also offers temporary hardship relief in genuine cases.

How does voluntary disclosure affect my employees?

When you make a voluntary disclosure and pay the outstanding super contributions, the money is paid into your employees' super funds. This ensures your employees receive the retirement savings they are entitled to, which can also help maintain positive workplace relationships. Employees can use our salary sacrifice calculator to explore additional ways to maximise their superannuation balance beyond the mandatory SG contributions.