Summarise with AI
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
- 12% of OTE — the final legislated rate
- In force since 1 July 2025
- Legal minimum contribution
- Employer cost, not deducted
Payment schedule
- With every pay run
- Received within 7 business days
- Must be received, not just sent
- Late = SGC penalty
The SG rate increased gradually from 9% in 2013 to its current final rate of 12%, effective from 1 July 2025. The rate schedule is now complete — 12% remains the legislated rate going forward. Note: since 1 July 2026, Payday Super has changed when super is paid \u2014 every pay run rather than quarterly.
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 (12%)
Example: $4,500 OTE × 12% = $540.00 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
Since 1 July 2026, super must be received by the employee’s fund within 7 business days of each payday. The quarterly deadlines below applied until 30 June 2026 and are kept for reference when reviewing earlier periods:
Quarterly deadlines ended on 1 July 2026
Since 1 July 2026, Payday Super has replaced the quarterly schedule. Super must be received by the fund within 7 business days of every payday. Use the free Payday Super calculator to estimate your cash flow impact.
- 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. For paydays from 1 July 2026 the charge is the shortfall, notional earnings at the general interest charge rate and an administrative uplift of up to 60%, and it is tax deductible. Quarters up to 30 June 2026 still use the old rules, under which the SGC is calculated on total salary and wages, includes 10% interest and a $20 admin fee per employee, and 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 the payday deadline
Super must be received (not just sent) by the fund within 7 business days of payday. 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 12%, the final legislated rate effective from 1 July 2025) 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.
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.
