The Superannuation Guarantee is the compulsory superannuation contribution employers must make for eligible employees.
Legislation: Superannuation Guarantee (Administration) Act 1992 | Category: Superannuation
What is Superannuation Guarantee?
The Superannuation Guarantee (SG) is the compulsory superannuation contribution that employers must make for eligible employees. As of 1 July 2024, the SG rate is 11.5% of Ordinary Time Earnings (OTE), increasing to 12% from 1 July 2025. Contributions must be made at least quarterly to a compliant superannuation fund.
Employers who fail to pay the correct superannuation by the quarterly due date become liable for the Superannuation Guarantee Charge (SGC), which includes the shortfall, interest charges (currently 10% per annum), and an administration fee ($20 per employee per quarter). The SGC is not tax-deductible.
Compliance Warning
Superannuation underpayment is a major compliance issue. The ATO has collected billions in unpaid super through its compliance programs. Directors can be held personally liable for unpaid superannuation through Director Penalty Notices.
Key Compliance Points for Employers
- Quarterly due dates are: 28 October, 28 January, 28 April, and 28 July
- The $450 per month threshold was removed from 1 July 2022 — SG is payable on all OTE regardless of amount
- Employees under 18 must work more than 30 hours per week to be eligible
- Most contractors paid primarily for labour are entitled to SG
- The ATO conducts extensive compliance activity on superannuation obligations
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.
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 amount, 10% interest per annum, and a $20 admin fee per employee per quarter. The SGC is not tax-deductible.
