The Superannuation Guarantee (SG) rate from 1 July 2024 is 11.5% of Ordinary Time Earnings (OTE), increasing to 12% from 1 July 2025. Employers must pay SG contributions quarterly for all eligible employees, with no minimum earnings threshold since 1 July 2022.
Legislation: Superannuation Guarantee (Administration) Act 1992 | Category: Superannuation
What is the Superannuation Guarantee?
The Superannuation Guarantee is the compulsory superannuation contribution that employers must pay into a compliant super fund for eligible employees. It ensures all Australian workers build retirement savings throughout their working life.
Current SG Rates
- 1 July 2024 – 30 June 2025: 11.5% of OTE
- From 1 July 2025: 12% of OTE (final scheduled increase)
Quarterly Due Dates
- Q1 (Jul-Sep): Due 28 October
- Q2 (Oct-Dec): Due 28 January
- Q3 (Jan-Mar): Due 28 April
- Q4 (Apr-Jun): Due 28 July
Key Compliance Points for Employers
- No minimum earnings threshold — SG is payable on all OTE regardless of amount (since 1 July 2022)
- Employees under 18 must work more than 30 hours per week to be eligible
- Most contractors paid primarily for labour are entitled to SG
- Late payment triggers the Superannuation Guarantee Charge (SGC) which includes the shortfall, 10% interest, and $20 admin fee per employee
- SGC is not tax-deductible
- Directors can face personal liability through Director Penalty Notices
- The ATO conducts extensive compliance activity on superannuation
What is Ordinary Time Earnings (OTE)?
OTE is the earnings base for calculating SG. It generally includes:
- Base salary and wages
- Commissions
- Shift loadings
- Allowances (most types)
- Bonuses (if part of ordinary hours work)
- Paid leave (annual leave, long service leave)
OTE generally excludes overtime payments, reimbursements, and termination payments (except unused leave).
Frequently Asked Questions
What is the super rate for 2024?
The superannuation guarantee rate from 1 July 2024 is 11.5% of Ordinary Time Earnings. This increases to 12% from 1 July 2025, which is the final scheduled increase.
Do employers have to pay super for casuals?
Yes, employers must pay superannuation for casual employees on all ordinary time earnings, regardless of how much they earn. The $450 per month threshold was removed on 1 July 2022.
What happens if super is paid late?
Late super payments trigger the Superannuation Guarantee Charge (SGC), which includes: the unpaid super amount, 10% interest per annum from the start of the quarter, and a $20 administration fee per employee per quarter. The SGC must be reported to the ATO and is not tax-deductible.
Do contractors get superannuation?
Contractors who are paid wholly or principally for their labour (rather than to achieve a result) are generally entitled to superannuation, even if they have an ABN. This includes most tradies and service contractors.
