The superannuation guarantee is the minimum super Australian employers must pay for eligible workers: 12% of each employee's qualifying earnings, as of October 2026. Since 1 July 2026, under Payday Super, it must reach the employee's fund within 7 business days after each payday, and late or short payments trigger the super guarantee charge.
If you employ anyone in Australia, even one casual, the super guarantee is part of every pay run. The rules changed a lot on 1 July 2026, so a lot of advice online is out of date. Here's what the ATO says now.
The rate, as of October 2026
| Period | General super guarantee rate |
|---|---|
| 1 July 2027 onwards | 12% |
| 1 July 2026 to 30 June 2027 | 12% |
| 1 July 2025 to 30 June 2026 | 12% |
| Norfolk Island, 1 July 2026 to 30 June 2027 | 11% (transitional) |
The rate itself didn't change with Payday Super: the ATO confirms it's still 12%. Norfolk Island's transitional rate rises to 12% from 1 July 2027. What changed is what you calculate it on and when you pay it.
Who you have to pay super for
Generally, all employees are eligible, whether they're full time, part time or casual, and even if they're already receiving a super pension or annuity while working. The ATO's rules:
| Worker | Do you pay super guarantee? |
|---|---|
| Employee aged 18 or over | Yes, regardless of hours worked or how much you pay them (up to the maximum contribution base) |
| Employee under 18 | Only for weeks they work more than 30 hours |
| Domestic or private worker | Only for weeks they work more than 30 hours |
| Contractor paid mainly for their labour | Yes, even if they quote an ABN |
| Temporary residents, such as backpackers | Yes |
| Company directors and family members working in the business | Yes |
| Non-resident employees working outside Australia | No |
Here's the trap that catches small businesses: the contractor rule. If you pay someone mainly for their labour, they can be eligible for super guarantee even though they've given you an ABN and invoice you. If you're a sole trader yourself, my guide to super for sole traders covers your own contributions, which work differently.
What you calculate it on: qualifying earnings
From 1 July 2026, the 12% applies to qualifying earnings, a new term that brings together ordinary time earnings and other payments. The ATO says qualifying earnings include ordinary time earnings, all commissions, salary sacrifice contributions and other amounts previously counted as salary or wages for super guarantee. Before 1 July 2026, it was 12% of ordinary time earnings.
There's a ceiling. The maximum contribution base for 2026 to 2027 is $270,830 a year: once an employee's qualifying earnings reach it, you can stop paying the minimum contributions for them for that year. Before Payday Super, the cap was quarterly ($62,500 for 2025 to 2026).
When you pay: the 7 business day rule
| Before 1 July 2026 | From 1 July 2026 | |
|---|---|---|
| How often | At least quarterly | For each payday |
| Deadline | Received by the fund within 28 days of the end of the quarter | Received by the fund within 7 business days after payday, with enough information to allocate it |
| Reporting | Through payroll | Qualifying earnings and super liability reported through STP |
There are some exceptions to the 7 business day deadline, such as for new employees. Payments must go electronically under SuperStream, and to the fund the employee chose.
Choice of fund and stapled funds
You must give employees a choice of super fund. If an employee doesn't return a choice form, you can request their stapled super fund details from the ATO. Funds now have 3 business days to allocate or return contributions, down from 20, so getting the fund details right at onboarding matters more than ever.
The super guarantee charge
If enough super isn't received on time and in the right fund, you're liable for the super guarantee charge, a tax that's far more expensive than paying on time. Under Payday Super, the ATO says the charge:
- Is calculated on qualifying earnings
- Includes interest that compounds daily at the general interest charge rate
- Includes an administrative uplift amount, which can be reduced if the ATO hasn't taken action before and you lodge a voluntary disclosure
Penalties on top are now 25% or 50% of the unpaid charge, depending on any prior penalties. Before 1 July 2026 they could reach 200%. If you've missed a payment and haven't received an assessment, the ATO's advice is to pay the outstanding amount to the fund as soon as possible.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Setting up super correctly
- Check each worker's eligibility, including contractors paid for their labour.
- Offer eligible employees a choice of fund, and use their nominated or stapled fund.
- Set your payroll to calculate 12% of qualifying earnings, not just base pay.
- Pay through a SuperStream-compliant channel on every payday.
- Allow time for the fund to receive and allocate it within 7 business days.
- Report through STP, and watch the maximum contribution base for high earners.
Still setting up the business? My guide to the ABN application covers that first step.
My verdict
Getting the percentage right is easy: 12%. The hard part since 1 July 2026 is timing, because a deadline that used to be weeks after a quarter is now 7 business days after every payday. If your payroll software isn't paying super automatically with each pay run, fix that first. And check your contractors: an ABN doesn't settle whether you owe them super.
Frequently asked questions
What is the superannuation guarantee rate?
12% of qualifying earnings, as of October 2026, and it stays at 12% from 1 July 2027.
When must super guarantee be paid?
From 1 July 2026, for each payday, received by the fund within 7 business days after payday, with some exceptions such as new employees.
Do I pay super for employees under 18?
Only for weeks they work more than 30 hours.
Do contractors get super?
Contractors paid mainly for their labour are eligible, even if they quote an ABN.
Is there a minimum earnings threshold for super?
No. For employees aged 18 or over you pay super regardless of how much you pay them, up to the maximum contribution base.
What is the super guarantee charge?
The tax you pay if super isn't received on time and to the right fund. It includes the shortfall, daily compounding interest and an administrative uplift.
