You can't pay employee super
Unpaid super is one of the highest-risk debts a small business can carry, because directors can become personally liable for it. Since 1 July 2026 (Payday Super), super must usually reach each employee's fund within 7 business days of payday. If you miss it, pay the fund as soon as you can, even part of it: the ATO says that reduces the charge. Directors should also lodge a voluntary disclosure statement within 60 days of payday, before any ATO assessment, to keep the director penalty from locking in for the amount it reports. You no longer lodge a statement for paydays from 1 July 2026; the ATO works out the charge and sends a notice. Call the Small Business Debt Helpline (1800 413 828).
Three things to do right now
- 1
Pay what you can to the fund now.
Even a part payment to each employee's fund reduces the charge, as long as the ATO hasn't sent you a notice of assessment yet. If you're a director, lodge a voluntary disclosure statement within 60 days of payday, before any ATO assessment: it lowers the charge and keeps your options open if a director penalty notice arrives. For super owed on wages paid up to 30 June 2026, outstanding super guarantee statements still need lodging, even with $0 paid.
- 2
Call the Small Business Debt Helpline on 1800 413 828.
Unpaid super combined with other ATO arrears is the configuration most likely to need an early SBR or voluntary administration conversation. SBDH will walk you through it, free.
- 3
Check whether the business can keep trading.
Taking on new wages and super you can't pay is one of the patterns linked to insolvent trading. If there's any doubt, talk to the Small Business Debt Helpline or a registered practitioner this week.
Key facts (checked October 2026)
- Paying the fund late still counts
- For paydays from 1 July 2026, super is on time if the fund receives it, usually within 7 business days of payday. Paying late, or paying part, before the ATO assesses you reduces the super guarantee charge. The ATO says this is the most important thing to do.
- A voluntary disclosure can reduce the charge
- You no longer have to lodge a super guarantee statement. You can choose to lodge a voluntary disclosure statement, but only before the ATO sends you a notice of assessment. Without one, the ATO can add an administrative uplift of up to 60% of the unpaid super and interest.
- Directors can be personally liable
- Unpaid super guarantee charge is one of the company debts the ATO can recover from directors through a Director Penalty Notice. For super on wages paid up to 30 June 2026, the old rule applies: if the charge was not reported by its due date, the penalty can only be cleared by paying the debt in full. For paydays from 1 July 2026, the penalty locks for any super guarantee charge not covered by a voluntary disclosure statement lodged within 60 days of payday and before the ATO assesses the company. An earlier ATO assessment brings that date forward. Then only paying the debt in full clears it.
Who to call
Free or low-cost. Independent of creditors. Checked October 2026.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Free, specialist. Will help you sequence lodgement, plan, and any formal options.
ASIC — Find a Registered Liquidator
The official ASIC search for registered liquidators and small business restructuring practitioners. Verify any practitioner you're considering, before paying any fee.
Verify any registered SBR practitioner or liquidator you speak to.
ATO Payment Plans (Online Services for Business)
Payment plans you may be able to set up yourself for tax debts of $200,000 or less via Online Services for Business or the self-help phone line. Higher amounts and complex cases via the assisted line.
Payment plan for the super guarantee charge once the ATO has assessed it. A plan doesn't stop late payment penalties.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
Prefer to talk to someone?
Mental health support is free, confidential, and one tap away.
Frequently asked questions
- Why is unpaid super higher-risk than unpaid GST?
- Unpaid super is money owed to your employees, and directors can be personally liable for the super guarantee charge. For super on wages paid up to 30 June 2026, a charge reported after its due date, or never reported, can only be cleared by paying it in full; there is no three-month window like the one for PAYG withholding and GST. For paydays from 1 July 2026, the penalty locks for any super guarantee charge not covered by a voluntary disclosure statement lodged within 60 days of payday and before the ATO assesses the company. An earlier ATO assessment brings that date forward. Ask the Small Business Debt Helpline on 1800 413 828.
- If I can't pay super, should I still pay wages?
- This is one of the highest-stakes questions in a struggling small business and the right answer depends on the facts. Continuing to incur new employee liabilities when you cannot meet existing ones is part of the insolvent-trading test. Talk to the Small Business Debt Helpline on 1800 413 828, and if there's any doubt about solvency, an initial conversation with a registered SBR practitioner or liquidator the same week.
- Can the super guarantee charge be reduced?
- Under Payday Super the charge has four parts: the unpaid super, interest on it (notional earnings), an administrative uplift of up to 60%, and a loading if you paid the wrong fund. Paying the fund before the ATO assesses you, and lodging a voluntary disclosure statement before then, both reduce it. Once assessed, the charge is due straight away; a payment plan is possible but late payment penalties can't be remitted.
Sources
- ATO — What happens if you don't pay super correctly (Payday Super, updated 21 June 2026)
- ATO — What to do if you miss a Payday Super contribution (updated 27 June 2026)
- ATO — The quarterly super guarantee charge (earnings paid up to 30 June 2026)
- ATO — Director penalties (updated 16 April 2026)
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.