Paying Super for Your Employees: What Employers Need to Know

Here’s a clear breakdown of what you need to know.

Superannuation Guarantee (SG): The Basics

In addition to wages, you must pay the Superannuation Guarantee (SG) for your eligible employees at least quarterly. The SG is the minimum amount of super you must contribute to each employee’s nominated super fund or retirement savings account.

Key SG due dates:

• Quarter 1: 28 October
• Quarter 2: 28 January
• Quarter 3: 28 April
• Quarter 4: 28 July

As of 1 July 2025, the SG rate has increased from 11.5% to 12% of an employee’s ordinary time earnings (OTE).

Who Needs to Be Paid SG?

SG applies to all eligible employees, including:

• Full-time, part-time, and casual staff
• Backpackers and temporary workers
• Company directors

You must also pay SG to contractors if you pay them mainly for their labour, not just materials or equipment.

Exceptions include:

• Sole traders (you’re not required to pay yourself SG)
• Employees under 18 years old working less than 30 hours per week

For employees under 18, SG applies only if they work more than 30 hours in a given week, regardless of how much they earn.

Choosing a Super Fund

Within 28 days of an eligible employee starting, you must give them a Superannuation Standard Choice Form to nominate their preferred fund.

If they don’t make a choice:

1. You must check if they have a stapled super fund (a fund linked to them from a previous job).
2. If they don’t have one, you must pay into your nominated MySuper fund, which includes basic protections for disengaged employees.

How to Make Super Payments

Super payments must be made through SuperStream, an electronic system that links employee contributions with their super fund details. Your payroll software must be SuperStream-compliant.

⚠️ Coming soon: The government has proposed ‘payday super’, requiring employers to pay SG every payday from 1 July 2026. This reform is not yet law but is worth preparing for.

What Happens If You Don’t Pay SG?

Failing to pay SG on time, in full, or to the correct fund triggers a Superannuation Guarantee Charge (SGC). This charge can be higher than the original SG amount and may also include additional penalties or interest.

Employees can report unpaid or incorrectly paid super directly to the ATO.

Stay Compliant

To avoid penalties and keep both your employees and the ATO happy:

• Regularly check your SG payment status
• Keep accurate records
• Ensure your payroll system is up to date
• Seek guidance from your financial adviser if needed

You’ve got enough to manage as a business owner—don’t let super become a costly oversight.