Finance question
Can I finance my super guarantee (SGC) arrears?
Yes. Superannuation guarantee charge arrears can be funded much like any other ATO debt. With property behind the deal, you can borrow against the equity to pay the SGC in full at single-digit rates, which clears the arrears and stops them compounding. Unpaid super is also tied to director liability, so dealing with it early matters.
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The short answer
SGC arrears clear the same way tax debt does
The superannuation guarantee charge is what the ATO applies when employee super has not been paid on time. It rolls the unpaid super together with interest and an administration component into one debt owed to the ATO. From a finance point of view, it behaves much like PAYG or GST arrears, and it can be dealt with the same way.
Property-backed finance is the usual route. If you own real estate, you can borrow against the equity to pay the SGC in full, at single-digit rates and often without financials. That clears the arrears in one move and stops the charge growing, rather than letting it compound while cashflow catches up.
There is an extra reason to act early. Unpaid super sits behind the director penalty regime, which can push the liability onto directors personally. Clearing the SGC removes that exposure. A broker structures the payout so the debt is settled cleanly and the personal risk goes with it.
Do you qualify?
What makes it work.
Property equity
Equity in real estate to borrow against.
The SGC quantified
A clear figure for the arrears owed to the ATO.
Acting early
Dealing with it before it compounds or escalates.
An active ABN
The employing business behind the debt.
Why funding SGC arrears makes sense
It stops it growing
Paying the SGC in full ends the charge compounding.
Property secures it
Real estate keeps the rate in single digits.
It cuts personal risk
Clearing the debt removes the director liability behind unpaid super.
A real example
An employer falls $70k behind on super, which the ATO turns into an SGC debt. Holding a property with $450k of equity, they refinance to pay it in full at a single-digit rate, clearing the arrears and the director exposure. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Is SGC treated differently from other tax debt?
For financing purposes it behaves much like PAYG or GST arrears. Property-backed lending can clear it the same way.
Why act quickly on super arrears?
The charge compounds and unpaid super sits behind director liability, so clearing it early limits both the cost and the personal risk.
Do I need financials to fund it?
For many property-backed deals, no. The equity in the property carries most of the assessment.
Does the arrears stop me borrowing?
Not for property-backed lending. ATO and SGC debt are workable when real estate secures the facility.