A complete guide to paying super for Australian employers
Introduction:
Paying superannuation correctly and on time is one of the most important compliance responsibilities for Australian employers. The ATO closely monitors super payments and applies penalties and interest charges to businesses that fail to meet their obligations.
For many employers, navigating superannuation requirements can be more complex than it first appears, with changing rules, different employee arrangements, and various payment methods to manage. To make this process easier, our payroll specialists.have created this step-by-step guide to help you stay on top of your employee super obligations and keep your business running smoothly.
Key takeaways
Employers must pay 12% of an employee’s Ordinary Time Earnings (OTE) from 1 July 2025.
Super is payable to all employees aged 18+, and to under-18s working more than 30 hours a week.
Payments must reach the fund by the quarterly due dates to avoid the Super Guarantee Charge (SGC).
From 1 July 2026, super will be paid at the same time as salary and wages under Payday Super.
What is superannuation for employers?
Superannuation, often called “super,” is a mandatory part of Australia’s retirement savings system and is regulated by the Australian Taxation Office (ATO). As an employer, you must contribute a set percentage of an employee’s earnings to their nominated superannuation fund under the Superannuation Guarantee (SG).
These contributions are invested in assets such as shares, bonds, and property to help the employee’s retirement savings grow over time. The main purpose of superannuation is to give employees a reliable income in retirement, reducing their reliance on government pensions and supporting a comfortable standard of living.
In the workplace, superannuation is more than a legal requirement. It is also a sign of your commitment to your team. Providing timely and accurate super contributions helps you meet compliance obligations and can make your business a more attractive place to work in a competitive job market.
Who do I have to pay super to?
You need to pay super to every eligible worker aged 18 or over, no matter how many hours they work. For those under 18, super is required if they work more than 30 hours a week.
This includes:
- Full-time, part-time, or casual workers.
- Employees who are receiving a super pension or annuity while continuing to work. This also includes those on a transition to retirement arrangement.
- Family members working in the business.
- Temporary residents.
- Company directors.
When are super payments due?
To avoid the super guarantee charge (SGC), super payments must reach the employee’s superannuation fund on or before the quarterly due dates. You may choose to pay more often, such as fortnightly or monthly, but the total super guarantee (SG) amount for the quarter must be received by the due date.
| Quarterly Super Payment Due Dates 2025–26 | ||
|---|---|---|
| Quarter | Work period | Payment due by |
| 1 | 1 July – 30 September | 28 October |
| 2 | 1 October – 31 December | 28 January |
| 3 | 1 January – 31 March | 28 April |
| 4 | 1 April – 30 June | 28 July |
If a due date falls on a weekend or public holiday, the payment must be in the fund by the next business day.
Note: From 1 July 2026, you will be required to pay your employees’ super at the same time as their salary and wages.
How to pay super contributions?
The easiest way to pay super is through your accounting or payroll software which connects to a SuperStream-compliant clearing house. This allows you to make a single electronic payment covering all employees, even if they are with different super funds. SuperStream ensures that both the payment and employee information are sent in a secure, standardised format.
You can also pay super directly to each employee’s nominated super fund or retirement savings account, as long as the payment meets SuperStream requirements and is received on time.
If your business has 20 employees or fewer, you can make all super contributions in one lump sum using the Small Business Superannuation Clearing House (SBSCH). However, under the Payday Super reform, the SBSCH will close on 1 July 2026. From 1 October 2025, only existing users will be able to access the service until the closure date. New registrations will not be accepted after 30 September 2025.
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How much super do I have to pay?
You are required to contribute 12% of each employee’s Ordinary Time Earnings (OTE) to their superannuation fund. OTE covers payments for an employee’s usual hours of work, including base salary, paid leave (annual or sick leave), commissions, shift loadings, and specific allowances such as:
- First aid allowance
- Cold work allowance
- Leading hand or site allowance
Certain payments are excluded from OTE, meaning no super is payable on them. These include:
- Overtime payments and related meal allowances.
- Reimbursements or fringe benefits
- Lump sum payments for unused leave upon termination.
- Workers’ compensation payments (unless the employee works or attends work while receiving them)
To calculate the quarterly superannuation amount, multiply the employee’s total OTE (before tax) by the Super Guarantee (SG) rate. The rate is applied based on the date the employee is paid, not when the work was done.
Example: If an employee earns $6,000 for work done from 10 June to 10 July 2025 and is paid on 20 July 2025, the 12% SG rate applies, resulting in a $720 contribution. Had payment been made in June, the 11.5% rate would apply, totalling $690.
There is also a cap known as the Quarterly Maximum Contribution Base (MCB). For 2025–26, this is $62,500 per employee per quarter. Super is only payable on OTE up to this amount, unless an award or agreement specifies otherwise.
For instance, if an employee earns $70,000 in OTE between July and September 2025, SG is calculated on $62,500 only, giving a contribution of $7,500.
The ATO reviews both the SG rate and the MCB annually, so employers should confirm current rates before each quarterly payment.
What if I miss paying super?
If you miss paying the correct super amount on time and to the correct fund, you must lodge a Super Guarantee Charge (SGC) statement with the ATO and pay the SGC.
The charge includes:
- The super shortfall amount (calculated on the employee’s gross salary and wages, including overtime and allowances)
- Interest on the shortfall.
- An administration fee
The ATO uses payroll and super fund data to identify cases of unpaid super and contacts employers who appear to be non-compliant. Employees can also report unpaid super directly to the ATO, which may result in compliance action.
Record-keeping requirements for employers
You must keep records that show how you have met your Super Guarantee obligations. Keep them for at least seven years. These should include:
- Employee details such as start date, salary, and employment status.
- Wages and ordinary time earnings for each quarter.
- How did you calculate the contribution amount for each employee.
- Dates and amounts of contributions, and the name of the fund they were paid to.
- Proof of payment, such as bank statements or receipts from the super fund.
- Copies of any Super Guarantee Charge statements and shortfall calculations.
Accurate and well-organised records protect your business from compliance issues and make ATO reporting simpler. Let our bookkeepers handle your record-keeping so every detail is captured, stored, and ready when you need it.
Need help with your super obligations?
If you have any questions or need expert support in managing your super obligations, our payroll specialists are here to assist. We will guide you through the requirements, explain any upcoming changes, and ensure your business remains fully compliant with ATO regulations. Book a call with today to discuss your needs and let us take the stress out of super, so you can focus on running your business.
