When Do You Have to Pay Superannuation?

Superannuation, often called “super,” is a compulsory system designed to help individuals save for retirement. It involves regular employer contributions into a dedicated fund, building a financial base for later years.

Eligibility for Superannuation Contributions

Employers must generally pay superannuation contributions for most employees, regardless of their employment status (full-time, part-time, or casual). Since July 1, 2022, the minimum monthly earnings threshold was removed, making nearly all employees aged 18 and over eligible for contributions, regardless of earnings. For employees under 18, eligibility typically applies if they work more than 30 hours per week.

Certain contractors may also be considered employees for superannuation purposes, based on specific criteria related to their ordinary time earnings. Non-resident employees working within the country are generally also entitled to receive superannuation contributions.

Calculating Superannuation Contributions

The Superannuation Guarantee (SG) rate determines the amount an employer must contribute, applied to an employee’s ordinary time earnings (OTE). From July 1, 2025, the SG rate is 12% of OTE, which represents earnings for standard working hours.

Components typically included in OTE are salary, wages, commissions, shift loadings, and certain allowances. Payments generally excluded from OTE include overtime, expense reimbursements, and lump sum payments for unused leave upon termination. Employers are not required to pay superannuation on earnings that exceed the quarterly maximum super contribution base, which is $62,500 per quarter for the 2025-26 financial year. For example, if an employee’s ordinary time earnings for a quarter are $70,000, superannuation is calculated only on $62,500.

Payment Due Dates and Frequency

Employers must typically make superannuation contributions at least quarterly. The specific due dates are October 28 (July-September quarter), January 28 (October-December quarter), April 28 (January-March quarter), and July 28 (April-June quarter). If a due date falls on a weekend or public holiday, payment is due the next business day.

Payments can be made directly to the employee’s chosen superannuation fund or through a superannuation clearing house. The payment must be received by the superannuation fund by the due date, not just sent, so employers should allow processing time. The Australian Taxation Office (ATO) previously provided a Small Business Superannuation Clearing House (SBSCH), but this service is closing to new users from October 1, 2025, and will cease operations entirely by July 1, 2026. While quarterly payments are the minimum, some industrial awards or enterprise agreements may mandate more frequent payments, such as monthly, and employers must adhere to these terms.

Employer Obligations and Consequences of Non-Payment

Beyond timely contributions, employers have several superannuation responsibilities. They must offer eligible employees a choice of superannuation fund, typically by providing a Standard Choice Form within 28 days of their start date. Maintaining accurate records of contributions for at least five years is also a requirement. Employers are also required to report superannuation information through Single Touch Payroll (STP).

Failure to pay superannuation on time or in full can result in the Superannuation Guarantee Charge (SGC). The SGC comprises the unpaid superannuation amount (calculated on salary or wages, not ordinary time earnings). It also includes a 10% per annum nominal interest component accruing from the start of the quarter, and a $20 per employee, per quarter administration fee. The SGC is not tax-deductible.