← Guides / Australia

Australia Superannuation Employer Guide

Australian employer superannuation obligations. The guide covers: the Super Guarantee (SG) rate of 11.5% (from 1 July 2025) — the employer must contribute the SG at 11.5% of the ordinary time earnings (the "OTE") to the employee's superannuation fund; the SG rate is scheduled to increase to 12% from 1 July 2026 (the "legislated SG rate increase"); the SG applies to the employees aged between 18 and 70 years (the "age limit" — from 1 July 2022, the age limit of 70 was removed for the employees under 18 who work more than 30 hours per week AND for the employees over 70); the SG is payable for the "employees" (the "employees" — the "common law employees" and the "independent contractors" if the contract is "wholly or principally for the labour" — the "contractor deemed as the employee" for the SG purposes under the "Superannuation Guarantee (Administration) Act 1992"); the ordinary time earnings (the "OTE") — the OTE is the "remuneration" for the "ordinary hours of the work" (the "ordinary hours" — the hours worked under the award or the agreement, NOT the overtime); the OTE includes: (a) the "salary and the wages" (the "base salary"), (b) the "commissions", (c) the "bonuses" (the "performance bonuses" and the "retention bonuses"), (d) the "shift loadings" and the "penalty rates", (e) the "allowances" (the "travel allowances", the "meal allowances", the "tool allowances"); the OTE does NOT include: (a) the "overtime payments" (the "overtime hours" — the hours above the ordinary hours), (b) the "reimbursements" (the "expense reimbursements"), (c) the "termination payments" (the "redundancy payments", the "golden handshakes"); the choice of fund (the "choice of fund") — the employer must offer the "choice of superannuation fund" to the eligible employees; the employee can choose the superannuation fund for the SG contributions; the employer must provide the "Standard Choice Form" (the "NAT 13080") to the eligible employees within 28 days of the commencement of the employment; the employer can have the "default fund" (the "default superannuation fund" — the fund chosen by the employer for the employees who do NOT exercise the choice); the default fund must be the "MySuper" product (the "MySuper" — the "low-cost default superannuation product"); the SG due dates (the "quarterly due dates") — the SG contributions must be paid by the quarterly due dates: (a) the "Q1 (Jul-Sep)": 28 October, (b) the "Q2 (Oct-Dec)": 28 January, (c) the "Q3 (Jan-Mar)": 28 April, (d) the "Q4 (Apr-Jun)": 28 July; the employer must pay the SG to the "employee's superannuation fund" by the due date; the employer can also pay the contributions "more frequently" (the "monthly" or the "pay cycle" contributions) but the minimum is the quarterly payment; the Superannuation Guarantee Charge (the "SGC") — the employer that does NOT pay the SG by the due date is liable for the SGC; the SGC is calculated as: (a) the "SG shortfall" (the "SG payable" minus the "SG paid"), PLUS (b) the "nominal interest" at the rate of 10% per year (the "interest on the shortfall"), PLUS (c) the "administration fee" of $20 per employee per quarter; the SGC is NOT tax-deductible (the "non-deductibility of the SGC"); the employer must lodge the "SGC statement" (the "Superannuation Guarantee Charge Statement" — the "NAT 9599") with the ATO within 28 days of the due date (the "SGC lodgement period"); the employer can apply for the "remission of the SGC" (the "SGC remission" — the ATO may remit the SGC if the employer has the "reasonable cause" for the late payment); the STP reporting of the superannuation (the "Single Touch Payroll") — the employer must report the superannuation contribution information through the STP at the time of each pay run; the STP reports: (a) the "amount of the SG contribution", (b) the "superannuation fund" of the employee, (c) the "contribution date"; the employee can view the SG contributions in the myGov account through the "ATO online services"; the employer record-keeping for the SG — the employer must keep the records of the SG contributions for at least 5 years; the records include: (a) the "SG contribution receipts" (the "payment receipts" from the superannuation funds), (b) the "records of the OTE" (the "payroll records" showing the OTE for each employee), (c) the "choice of fund records" (the "standard choice forms" and the "default fund details"), (d) the "SGC statements" (if applicable). All amounts in Australian Dollars (AUD). For related reading, see our Superannuation Guide → and Hiring Employees Guide →.

SG Rate Increases

  • 2025-26: 11.5% — The SG rate is 11.5% from 1 July 2025. The rate increased from 11% (2023-24) to 11.5% (2024-25) and now to 11.5% (2025-26 — note: the increase to 12% was delayed).
  • 2026-27: 12% — The SG rate is scheduled to increase to 12% from 1 July 2026. This is the "final SG increase" under the "Superannuation Guarantee (Administration) Act 1992". The rate of 12% is the "legislated maximum" and is not expected to increase further.

For the SGC calculation and the SGC lodgement, see our Superannuation Guide →.

SGC — Late Payment Penalties

  • SG shortfall + 10% interest + $20 fee: The SGC includes the SG shortfall (the amount that should have been paid), the nominal interest at 10% per year (calculated from the due date to the date of the payment), and the administration fee of $20 per employee per quarter. The SGC is NOT tax-deductible.
  • SGC statement: The employer must lodge the "SGC statement" (the "NAT 9599") within 28 days of the due date. The SGC is paid to the ATO (NOT to the superannuation fund). The ATO will then distribute the SGC to the employee's superannuation fund.

For the choice of fund obligations and the MySuper default fund, see our Hiring Employees Guide →.