Superannuation Guarantee (SG)

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 2026–27, 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.

Under Payday Super (the Treasury Laws Amendment (Payday Superannuation) Act 2025), employers must now pay SG contributions on "qualifying earnings" at the same time as wages — the contribution must be received by the employee's super fund within 7 business days of each payday (called a QE day), replacing the old quarterly (28-days-after-quarter-end) system from 1 July 2026. Late or unpaid SG contributions attract the Super Guarantee Charge (SGC), which is now assessed per payday and includes the missed contributions, notional earnings accruing daily at the general interest charge rate, and an administrative uplift of up to 60% of the shortfall. Unlike the old regime, the SGC shortfall, notional earnings and administrative uplift are now tax-deductible.

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.