What is SG?
Superannuation Guarantee (SG) legislation requires most employers to pay 12% (2025/26 financial year) of an eligible employee's ordinary time earnings (OTE) as super. An employer can claim these payments as a tax deduction if paid on time.
SG eligibility & how to calculate
- All employees are eligible for SG from 1 July 2022, regardless of their earnings.
- Calculate SG based on the employee's ordinary pay, which may include bonuses or allowances.
- Employers must also pay SG contributions for eligible employees who are on leave (annual leave, paid sick leave, long service leave, and in some circumstances workers' compensation).
New rules, new requirements: what they mean for your business
From 1 July 2026, the timing and processing of Superannuation Guarantee (SG) contributions will change under the Payday Super reforms. Key updates include:
- Payments every payday
- Employers must ensure SG contributions are received by the employee’s super fund within 7 business days of payday (otherwise ATO charges may apply).
- Funds allocate within 3 business days
- SG based on qualifying earnings (OTE plus Salary sacrifice amounts)
- Revised SGC with notional earnings, administrative uplift, and penalties.
Next steps
Talk to us
- Have questions or need clarification? We're here to help.
Join as an Employer
- Sign up with us to streamline your superannuation management.
Nominate legalsuper as your default fund
- Choose a reliable super fund as your default option for employees.
Sign up to make payments
- Register to efficiently manage and make your SG payments.
Frequently Asked Questions
Superannuation must be paid at the same time as salary and wages under Payday Super. Employers must ensure SG contributions are received by the employee’s super fund within 7 business days of payday.
- Employees can select their super fund, or you can assign them to a default fund.
- 'Stapling' refers to an employee's existing super fund that follows them when they change jobs.
There's a cap on the maximum SG payment per employee, adjusted annually.
Collect and promptly submit employees' Tax File Numbers (TFNs) to their super funds.
Yes. Late or missed SG payments must be reported to the ATO and will trigger the Superannuation Guarantee Charge, which includes additional fees and interest.
A late or missed SG payment is when an employer does not pay super:
- At the same time wages are paid
- By the required date for the pay cycle
- In full, meaning any shortfall also counts as a missed or late payment.
- Maintain records of offering super fund choices and of SG payments made.
- Report extra super contributions on employee's annual payment summaries if above the required amount or if the amount contributed has been influenced by the employee.
From 1 November 2021, if a new employee doesn't choose a fund, the employer is required to check if the employee already has a fund by contacting the Taxation Office. If a super fund already exists for the employee, the employer is required to pay super into this account, which is known as a 'stapled super fund'.
Yes. If there's no chosen fund or stapled super fund the employer must pay super contributions into their nominated default fund. Under the super guarantee, employers have to pay super contributions of 12% of an employee's ordinary time earnings when an employee is: over 18 years, or under 18 years and works over 30 hours a week.
Visit the ATO for more information about your legal responsibilities as an Employer.
