Superannuation Guarantee
The Superannuation Guarantee (SG) rate is 12% of qualifying earnings (QE). Since 1 July 2026, employers must pay SG with every pay run, and it must reach the employee’s fund within 7 business days of payday. Quarterly super no longer applies. There is no minimum earnings threshold.
Legislation: Superannuation Guarantee (Administration) Act 1992, as amended by the Treasury Laws Amendment (Payday Superannuation) Act 2025 | Category: Superannuation
What is the Superannuation Guarantee?
The Superannuation Guarantee is the compulsory super contribution employers must pay into a compliant fund for eligible employees. That includes contractors paid mainly for their labour. It makes sure Australian workers build retirement savings throughout their working life.
Current SG Rate
- From 1 July 2025: 12% (the final legislated increase)
- From 1 July 2026: still 12%, now calculated on qualifying earnings rather than ordinary time earnings
Payday Super: When SG Is Due
From 1 July 2026, super is due each payday, not each quarter.
- Standard deadline: the contribution must be received by the employee’s fund within 7 business days after payday. The fund must also have the information it needs to allocate it.
- New employees: the first contribution has 20 business days.
- Business days exclude weekends and state-wide or territory-wide public holidays.
- The deadline is the date the fund receives the money, not the date you send it. Build in time for your clearing house.
Want to see what this means for your pay cycle? Use our Payday Super Calculator.
Transition from quarterly super
The April to June 2026 quarter was the last one under the old rules. That quarter was due by 28 July 2026, calculated on OTE. If you missed 28 July, you must lodge an SGC statement for that quarter. The late payment offset is not available for it.
What Are Qualifying Earnings (QE)?
Qualifying earnings replace OTE as the base for calculating SG. QE includes:
- Ordinary time earnings (base pay, shift loadings, most allowances, paid leave, bonuses linked to ordinary hours)
- All commissions
- Salary sacrificed amounts
- Other amounts previously treated as salary or wages for SG, such as directors’ fees and payments to contractors paid mainly for their labour
Overtime, expense reimbursements and most termination payments are generally excluded. You must report both QE and super liability through Single Touch Payroll (STP).
Maximum contribution base
The maximum contribution base caps the earnings SG must be paid on. It now applies annually, not quarterly. For high earners, SG is paid until the annual cap is reached, which front-loads contributions earlier in the financial year.
Key Compliance Points for Employers
- Pay super every pay run. Quarterly batching now puts you in breach.
- No minimum earnings threshold. SG applies to all qualifying earnings.
- Under 18s must work more than 30 hours in a week to be eligible.
- Contractors paid mainly for their labour are generally entitled to SG, even with an ABN.
- The Small Business Superannuation Clearing House has closed. You need an alternative clearing house or payroll-integrated option.
- Get fund details right at onboarding. Rejected payments count against your 7 day window.
- Directors can be personally liable for unpaid SGC through Director Penalty Notices.
- The ATO matches STP data against fund data, so late super is picked up quickly.
Late Super: The Superannuation Guarantee Charge (SGC)
If super isn’t received on time, the SGC applies. Under Payday Super, the SGC:
- is assessed by the ATO. Employers no longer lodge an SGC statement.
- is calculated on qualifying earnings
- includes interest that compounds daily at the general interest charge (GIC) rate
- includes an administrative uplift amount, which can be reduced if you make a voluntary disclosure before the ATO takes action
- is tax deductible (this is a change from the old rules)
If the SGC remains unpaid, penalties of 25% or 50% of the unpaid charge can apply, depending on your history of prior penalties.
Frequently Asked Questions
What is the super rate for 2026?
The Superannuation Guarantee rate is 12%. From 1 July 2026 it is calculated on qualifying earnings, which include ordinary time earnings, commissions and salary sacrificed amounts.
When do employers have to pay super now?
Since 1 July 2026, employers must pay super with each pay run. It must be received by the employee’s fund within 7 business days of payday. A new employee’s first contribution has 20 business days.
Do employers have to pay super for casuals?
Yes. Employers must pay super for casual employees on all qualifying earnings, regardless of how much they earn. The $450 per month threshold was removed on 1 July 2022. Casuals under 18 must work more than 30 hours in a week to be eligible.
What happens if super is paid late?
The ATO assesses a Superannuation Guarantee Charge. It is made up of the shortfall, daily compounding interest at the GIC rate and an administrative uplift. Penalties of 25% or 50% can apply if it stays unpaid. Making a voluntary disclosure before the ATO acts can reduce the uplift.
Do contractors get superannuation?
Contractors paid wholly or principally for their labour, rather than to achieve a result, are generally entitled to super, even if they have an ABN. This includes most tradies and service contractors. Their payments count as qualifying earnings.
Can I still use the Small Business Superannuation Clearing House?
No. The SBSCH closed on 30 June 2026. Employers must use a commercial clearing house, a payroll-integrated solution or pay funds directly.
