Payday Super – terms we use
Brief definitions of new or unfamiliar terms used in Payday Super.
Published 1 June 2026
An amount that reflects the cost of the ATO investigating and assessing an employer's super guarantee charge, and encourages early disclosure by an employer.
It is part of the super guarantee charge and is calculated as a percentage of the unpaid super and notional earnings. The starting percentage is 60% and can be reduced based on the employer's past compliance history and lodgment of a voluntary disclosure statement.
See What happens if you don't pay super correctly - Administrative uplift.
An amount equal to the individual super guarantee amount for a particular QE day, less any on-time eligible contributions.
If the employer pays the individual super guarantee amount in full and on time, the individual base super guarantee shortfall is nil.
See What happens if you don't pay super correctly – Individual final super guarantee shortfall.
An amount equal to the individual base super guarantee shortfall, less any late eligible contributions, calculated the day before a super guarantee charge assessment is made.
The individual final super guarantee shortfall is part of the super guarantee charge.
See What happens if you don't pay super correctly – Individual final super guarantee shortfall.
The minimum super guarantee an employer must pay to an employee's super fund for their benefit, for a particular QE day, to avoid the super guarantee charge.
It is 12% of the employee's qualifying earnings for that QE day.
See What happens if you don't pay super correctly – Individual final super guarantee shortfall.
A super guarantee contribution received by the fund more than 7 business days (or longer, if a longer period applies) after paying the employee but before an assessment for the super guarantee charge is made.
Late eligible contributions reduce the individual final super guarantee shortfall that is included in the super guarantee charge.
An amount that reflects interest on unpaid super guarantee amounts.
Notional earnings start accruing when the employer has an individual base super guarantee shortfall for a QE day and stop when the individual final super guarantee shortfall is reduced to nil.
Notional earnings are part of the super guarantee charge. They are calculated using the general interest charge (GIC) rate and are compounded daily.
See What happens if you don't pay super correctly – Notional earnings.
A super guarantee contribution received by the fund within 7 business days (or longer, if a longer period applies) after paying the employee.
An on-time eligible contribution paid in full and to the right fund means the employer will not be liable for the super guarantee charge for the QE day for the employee.
The amount of employee earnings that qualify for super guarantee contributions, including ordinary time earnings. Qualifying earnings also include amounts paid to contractors who are engaged primarily for their labour.
Employers calculate super guarantee contributions based on their employees' qualifying earnings.
For a full list of included earnings, see What payments are qualifying earnings.
The day an employer pays qualifying earnings to an employee eligible for super guarantee. This is the same day as payday. For an independent contractor engaged primarily for their labour, the QE day is the day their invoice is paid.
The QE day is the start of the payment timeframe for super guarantee contributions.
A charge on the employer for failing to pay super guarantee contributions for their employees in full, on time and to the right fund. It includes the total of any unpaid super, notional earnings, the administrative uplift amount, and the choice loading (if any).
The ATO calculates the charge and sends an assessment to the employer.
A statement that an employer provides to the ATO about their super guarantee shortfall before an assessment of super guarantee charge is made.
The statement must be in the form required by us. Lodgment of a voluntary disclosure statement can reduce an employer's administrative uplift amount.
QC107417