Superannuation Guarantee (SG) Guide for Australian Employers

Super has always been an obligation that’s easy to get wrong and expensive when you do. Miscalculate the rate, miss a deadline or pay to the wrong fund and you’re looking at penalties, interest charges and an ATO audit. From 1 July 2026, the stakes get higher.

This guide breaks down everything you need to know about the Superannuation Guarantee (SG) so you can manage your operations with confidence.

What does this guide cover?

This comprehensive payroll guide covers the essentials of superannuation in Australia. In here, you’ll find:

• What the Superannuation Guarantee is and who it applies to
• How to calculate super correctly, including what counts as ordinary time earnings
• When payments are due and how to avoid missing a deadline
• What happens if you pay late or underpay
• How to handle super during parental leave and other leave types
• What’s changing under Payday Super from 1 July 2026 and how to prepare
• A compliance checklist to keep your business on track

Ready to feel super confident? Download the factsheet now by filling out the form on the right hand side. 

What is the Super Guarantee (SG) and who must pay it?

The Superannuation Guarantee is a compulsory system designed to help Australians save for retirement. Under the Superannuation Guarantee (Administration) Act, employers must pay a percentage of their employees’ earnings into a complying super fund.

If you hire staff in Australia, you almost certainly need to pay super. This applies to full-time, part-time and casual employees, regardless of how much they earn.

It also applies to some contractors: if you pay an independent contractor under a contract that is wholly or principally for their labour, they are considered an employee for SG purposes, even if they have an ABN. If you’re unsure whether a worker qualifies, the ATO’s Super Guarantee Eligibility tool can help you work it out.

Super Guarantee rates and contribution percentages

The SG rate has been gradually increasing over the past decade and has now reached its legislated destination. The SG rate increased to 12% on 1 July 2025; the final scheduled increase.

This means you must contribute 12% of each eligible employee’s ordinary time earnings into their super fund. The 12% rate is expected to remain unless Parliament legislates otherwise. 

Maximum super contribution base

While you must pay super on an employee’s ordinary time earnings, there is a cap on the earnings for which SG is required. For 2025–26, the maximum super contribution base is $62,500 per quarter. If an employee earns above this threshold in a quarter, you’re not required to pay super on the portion above the limit. The ATO indexes this figure annually.

From 1 July 2026, this quarterly cap changes under Payday Super. The maximum contributions base will shift from a quarterly cap to an annual cap. The ATO’s current expected figure for 2026–27 is $270,830.

You can always choose to contribute more than the minimum if you have an agreement with the employee; the law only mandates contributions up to the maximum base.

Providing employees with choice of super fund

Employees have the right to choose where their super goes. You must provide eligible employees a Superannuation standard choice form within 28 days of their start date. You don’t have to use the ATO’s standard form, but any alternative must cover the same information.

If an employee nominates a valid, complying fund, you must pay their contributions into that account. Once an employee tells you their choice of super fund, you have two months to start paying contributions into that fund. 

Understanding stapled super funds for new employees

If a new employee doesn’t nominate a super fund, you can’t simply open a default account for them. You may need to request their stapled super fund details from the ATO. A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. This stops workers from accumulating multiple accounts and paying unnecessary fees.

If the ATO confirms the employee has no stapled fund, you can then pay into your employer-nominated default fund. Failing to follow this process can attract a choice liability penalty. Learn more about Super Stapling here.

Super payment due dates and quarterly obligations

Until 30 June 2026, you must pay super at least four times a year. The quarterly due dates are:

• Quarter 1 (July to September): Due 28 October
• Quarter 2 (October to December): Due 28 January
• Quarter 3 (January to March): Due 28 April
• Quarter 4 (April to June): Due 28 July

Many businesses choose to pay monthly or fortnightly to spread the cost and reduce the risk of a large payment falling due at quarter end. 

From 1 July 2026, quarterly payments are replaced entirely by Payday Super where super must be paid every payday, with contributions reaching the employee’s fund within seven business days.

Using SuperStream to pay super contributions

The ATO requires all employers to pay super electronically using the SuperStream standard. SuperStream makes sure both the payment and associated data are transmitted consistently across the super system, allowing a single payment to be distributed to multiple employee funds automatically.

What happens if you miss super payments?

Missing a super payment is a serious compliance issue. If you fail to pay the correct amount to the right fund by the due date, you must lodge a Superannuation Guarantee Charge (SGC) statement and pay the SGC to the ATO.

Under the current quarterly system, the SGC is calculated on total salary and wages (including overtime) not just ordinary time earnings, making it more expensive than the super you would have paid on time. It also includes nominal interest of 10% per annum accruing from the first day of the quarter and an admin fee of $20 per employee per quarter. SGC payments are not tax-deductible under the current system.

From 1 July 2026, the penalty framework changes significantly under Payday Super. The flat $20 administration fee per employee per quarter is replaced by an administrative uplift of up to 60% of the SG shortfall plus notional earnings. Unlike the current system, the SGC itself becomes tax-deductible, however, any general interest and late payment penalties remain non-deductible.

If the assessed SGC remains unpaid for 28 days, the ATO will issue a Notice to Pay. If the SGC is not then paid within the further 28-day period specified in that notice, a late payment penalty applies; generally 25% of the outstanding amount, rising to 50% if the employer has been liable for the same penalty within the previous 24 months. Learn more about the SGC here.

Download the superannuation guarantee guide

Superannuation obligations are only getting more demanding. With Payday Super arriving at the start of the new financial year on 1 July 2026, now is the time to make sure your payroll systems, payroll processes and cash flow are ready.

We’ve put together a comprehensive guide to help you stay on top of your SG obligations. 

Download our complete guide today by filling out the form on the right. 

Disclaimer: The information in this factsheet is current as at 26 March 2026, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this factsheet are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this factsheet. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this factsheet.