What is superannuation (super guarantee)?
Superannuation, or super, is Australia's compulsory workplace retirement savings system. Under the super guarantee, employers must pay a set percentage of each eligible employee's earnings into a super fund on top of wages. The rate has been 12% since 1 July 2025, and from 1 July 2026 super must be paid each payday rather than quarterly.
Also calledsupersuper guaranteeSGPayday Super
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- Super guarantee rate
- 12% from 1 July 2025
- Payday Super
- From 1 July 2026
- Fund must receive
- Within 7 business days of payday
How superannuation works
Until 30 June 2026, employers paid super guarantee at least quarterly, calculated on ordinary time earnings. Under Payday Super, from 1 July 2026 employers calculate super guarantee at 12% of qualifying earnings, a term that brings together ordinary time earnings and some other payments, and the contribution must reach the employee's fund within seven business days of each payday. Late or short payments trigger the super guarantee charge, which is not tax-deductible and includes interest and an administration component. Contributions are sent to funds electronically in a standard data format, often through a clearing house, and reported through Single Touch Payroll. Employees choose their fund; if they do not, the employer checks for an existing stapled fund before using its default fund. Payroll software calculates the contributions and produces the payment files.
Common questions
What is Payday Super?+
The rule from 1 July 2026 that employers pay super guarantee with each pay run, and that it reaches the employee's fund within seven business days, instead of paying quarterly.
What is the super guarantee charge?+
The charge an employer pays if super is late or short. It includes the missed super, interest and an administration fee, and unlike on-time super it is not tax-deductible.
Is super paid on top of wages?+
Yes, for most employees super guarantee is paid by the employer in addition to wages, although some packages quote total remuneration including super.
Payroll software that calculates super
Part of Accountio’s accounting technology coverage · Glossary
