Superannuation Explained for Employers

Super guarantee (SG) is one of the most important obligations an employer has. The rules changed significantly on 1 July 2026 with the start of Payday Super.

How much super to pay

The super guarantee rate is 12%, which has applied since 1 July 2025. It's calculated on an employee's qualifying earnings — generally their ordinary time earnings plus salary-sacrificed amounts. Overtime is usually excluded, although some awards and agreements require super on more.

For 2026–27, the annual maximum contribution base is $270,830. Once an employee's qualifying earnings reach this amount, SG isn't required on further earnings for the year.

Payday Super: when to pay

From 1 July 2026, employers must pay SG for each payday rather than quarterly. Contributions generally need to reach the employee's super fund within 7 business days of payday, with the information the fund needs to allocate them. There are some exceptions, such as for new employees.

The ATO has said that employers who try to do the right thing and fix issues quickly won't be the focus of compliance action during the first year.

Who is entitled to super?

• Full-time, part-time and casual employees — there's no minimum earnings threshold
• Employees under 18 who work more than 30 hours in a week
• Some contractors, if they're paid mainly for their labour
• Some company directors receiving payments for their work

Choosing the fund

Employees can generally choose their own fund. If a new employee doesn't choose, you usually need to request their existing 'stapled' fund from the ATO before using your default fund.

Getting it wrong

If SG isn't paid correctly and on time, the super guarantee charge may apply. It includes the shortfall, interest and an administration component, and it isn't tax-deductible — making late payment much more expensive than paying on time.