Understanding super guarantee
The superannuation guarantee is the backbone of Australia's retirement savings system. It ensures that employers contribute a minimum percentage to employees' super funds, building retirement savings over a working lifetime.
Current SG rate
- 11.5% of OTE (2024-25)
- 12% from 1 July 2025
- Legal minimum contribution
- Employer cost, not deducted
Payment schedule
- At least quarterly
- Due by 28th of following month
- Must be received, not just sent
- Late = SGC penalty
The SG rate has increased gradually from 9% in 2013 to the current 11.5%, with the final 12% rate taking effect from 1 July 2025. Employers must update their systems each year to apply the new rate.
Calculating super guarantee
Super guarantee is calculated on ordinary time earnings (OTE), which includes most regular payments but excludes overtime. The formula is simple:
SG calculation
Super Guarantee = OTE × SG Rate (11.5%)
Example: $4,500 OTE × 11.5% = $517.50 super contribution
OTE typically includes:
- Included: Base salary/wages, shift loadings, paid leave, bonuses, commissions, casual loading
- Excluded: Overtime payments, expense reimbursements, termination payments in lieu of notice
Super guarantee quarterly deadlines
Super must be received by the employee's fund by the quarterly due date. Mark these dates in your calendar:
- Q1 (July-September): Due 28 October
- Q2 (October-December): Due 28 January
- Q3 (January-March): Due 28 April
- Q4 (April-June): Due 28 July
Super Guarantee Charge warning
If super isn't received by the due date, employers must lodge an SGC statement and pay the Super Guarantee Charge. The SGC is calculated on total salary and wages (not just OTE), includes 10% interest, and has a $20 admin fee per employee. Unlike regular super, SGC is not tax deductible.
Who must receive super guarantee
Entitled to SG
- All employees regardless of earnings
- Full-time, part-time, and casual workers
- Temporary residents
- Some contractors (labour-based)
May not require SG
- Non-resident employees paid overseas
- Some visiting academics
- Employees covered by bilateral agreements
Since 1 July 2022, there's no minimum $450 monthly earnings threshold—all employees are entitled to SG regardless of how little they earn.
Common super guarantee mistakes
Missing quarterly deadlines
Super must be received (not just sent) by the due date. Allow 2-3 business days for electronic clearing. Late payments trigger SGC regardless of reason.
Applying old SG rates
The SG rate changes on 1 July. Using last year's rate after the increase date results in underpayment. Update payroll systems before each financial year.
Calculating on wrong earnings base
SG is calculated on OTE, not total wages. Including overtime overpays; excluding paid leave underpays. Get the OTE definition right.
Paying to wrong fund
Paying to an old fund when an employee has changed funds, or not checking for stapled super funds for new employees who don't make a choice.
Key takeaways
The superannuation guarantee is the minimum percentage (currently 11.5%) that employers must contribute to employee super funds, calculated on ordinary time earnings. It's a legal requirement with significant penalties (SGC) for non-compliance. The rate will reach its final 12% from 1 July 2025.
Accurate SG calculations require correctly identifying ordinary time earnings from your workforce data. RosterElf's time and attendance system tracks hours and exports data that distinguishes ordinary hours from overtime, helping ensure your payroll calculates the correct super contributions.
