LEARN · SUPER GUARANTEE

Super Guarantee — 12% in 2026, payment dates, and the SGC trap

Super Guarantee (SG) is the compulsory super contribution employers must pay on top of employee wages. The rate has stepped up year by year and reached 12% from 1 July 2025. Late payment converts the contribution into the Super Guarantee Charge — non-deductible, with interest, paid to the ATO not the fund.

1. The rate

  · Up to 30 June 2025: 11.5%
  · From 1 July 2025: 12% (the legislated final step — currently no further increases scheduled)
  Calculated on ordinary time earnings (OTE) — wages plus most allowances and shift loadings. Overtime is generally excluded. Bonuses connected to ordinary work are usually OTE.

2. Payment due dates

Quarterly: 28 October, 28 January, 28 April, 28 July (i.e. 28 days after each quarter end). Some employers pay monthly via payroll software for simplicity. Recent reforms are bringing payday-aligned super in for many employers — check your specific obligations as the rules transition.

3. What counts as 'paid'

SG is paid when the funds clear into the employee's super-fund account, not when you transfer them. Use SuperStream-compliant clearing houses (most modern payroll software is) and pay several business days before the deadline to allow for processing.

4. The Super Guarantee Charge (SGC) trap

If you miss the payment deadline, the SG obligation converts to an SGC obligation. Three differences: SGC is calculated on total salary and wages (not just OTE — wider base), SGC includes interest at 10% from the start of the quarter, SGC is not deductible. You also have to lodge an SGC statement to the ATO. The cost difference between paying SG on time and paying SGC late is typically 30-50% of the original SG amount.

5. Common mistakes

  · Paying late and assuming a small grace period exists — there isn't one
  · Calculating on base wages only when the employee receives shift loadings or commissions that count as OTE
  · Paying super on apprentices' wages incorrectly (apprentices are employees and SG applies in full above $450/month historic threshold — that threshold removed since July 2022)
  · Missing super on contractors who are deemed employees for SG purposes (the 'wholly or principally for labour' rule)

6. When to talk to us

Before hiring your first employee or contractor where SG might apply. Once a quarter is missed, the cleanup is more involved than the prevention — voluntary SGC disclosure before the ATO contacts you reduces the penalty component but not the interest. Quarterly super reconciliation is included in our payroll and bookkeeping services.

LAST REVIEWED · 2026-05 · BY ZAKI CHOUDHRY · TPB 26321143