Superannuation Guarantee (SG)
The compulsory minimum percentage of an employee's ordinary time earnings that employers must contribute to their super fund.
The Superannuation Guarantee (SG) is the minimum percentage of an employee's ordinary time earnings (OTE) that employers must contribute to their employee's super fund. For 2025–26, the SG rate is 12%. It is legislated to remain at 12% going forward after reaching this level from 1 July 2025 (up from 11.5% in 2024–25). SG applies to employees aged 18 and over, and to employees under 18 who work more than 30 hours per week.
Employers must pay SG contributions at least quarterly — within 28 days of the end of each quarter (28 October, 28 January, 28 April, and 28 July). Late or unpaid SG contributions attract the Super Guarantee Charge (SGC), which includes the missed contributions, interest (currently 10% per annum), and an administration fee. The SGC is not tax-deductible, unlike timely SG contributions.
Ordinary time earnings include base salary, commissions, shift loadings, and some allowances, but generally exclude overtime payments. Since 1 July 2022, the $450 monthly threshold was removed — SG is now payable on all OTE regardless of how little the employee earns. Contractors who are primarily paid for their labour may also be entitled to SG even if engaged via an ABN.