Superannuation Guarantee obligations in Australia
The Superannuation Guarantee (Administration) Act 1992 (Cth) requires employers to pay a minimum percentage of an eligible employee's Ordinary Time Earnings into a complying super fund. The rate is 12% from 1 July 2025. Late or missed payments trigger the Superannuation Guarantee Charge, which is not tax-deductible. This guide covers the 10 core SG obligations.
Coverage
Every Australian employer with employees — including directors paid salary, most contractors working wholly or principally for their labour, and many casual and part-time workers. Some low-income and age-based exemptions apply.
Legal basis
Superannuation Guarantee (Administration) Act 1992 (Cth) and Superannuation Guarantee (Administration) Regulations 2018. Superannuation Guarantee Charge Act 1992 (Cth). Taxation Administration Act 1953 (Cth) sch 1 for reporting and penalties.
The obligations
Pay at least the minimum SG rate
Pay at least the legislated SG rate (12% from 1 July 2025) on Ordinary Time Earnings for every eligible worker each quarter.
Pay by the quarterly due date
Contributions must be received by the super fund by 28 October, 28 January, 28 April and 28 July — not merely sent — for each quarter of earnings.
Offer choice of fund
Give eligible employees a Standard Choice Form within 28 days of starting and pay to the fund they nominate, or to their stapled fund if they do not choose.
Check the stapled fund via ATO
For new employees who do not choose a fund, request the stapled fund details through ATO Online Services for Business before defaulting to the employer fund.
Use SuperStream for payments and data
Send contribution data and payments electronically in the SuperStream format through a gateway, clearing house or compliant payroll system.
Treat many contractors as employees for SG
If a contractor is engaged wholly or principally for their labour, they are an employee for SG purposes even where they hold an ABN and invoice for services.
Calculate SG on OTE, not total wages
Calculate SG on Ordinary Time Earnings — usually base salary, commissions, shift loadings and most allowances, but not overtime except where specifically included.
Lodge an SG charge statement if late
If a quarterly payment is late or short, lodge a Superannuation Guarantee Charge statement and pay the SGC (shortfall plus interest and administration fees) by the following due date.
Keep five years of SG records
Retain records of OTE, contributions, fund details, choice forms and SuperStream messages for at least five years to support ATO reviews and audits.
Report contributions through STP
Report super liabilities through Single Touch Payroll each pay event so the ATO can match contributions received by funds against reported amounts.
What happens if you do not comply
Late or missed SG triggers the Superannuation Guarantee Charge — shortfall plus nominal interest (10%) plus an administration fee — which is not tax-deductible. Directors can be personally liable under the director penalty regime, and the ATO can apply additional Part 7 penalties of up to 200% of the SGC.
Reporting requirements
Employers must lodge an SG Charge statement when contributions are late or short, report pay events through Single Touch Payroll, and respond to ATO reviews and employee SG complaints referred by the ATO under the Taxation Administration Act 1953 (Cth).
What firms should do today
- Audit payroll to confirm OTE is correctly identified for every role
- Schedule SG payments a week before the quarterly deadline to allow for SuperStream clearance
- Use the ATO stapled fund service for every new employee without a choice
- Reconcile SuperStream payment confirmations against STP super liabilities
- Set a director-level control for late SG to ensure timely SGC lodgement
Compliance with Quillio
Quillio reviews employment contracts, contractor agreements and executive terms to flag Ordinary Time Earnings risk and SG clause gaps before onboarding. See /resources/security for how we handle payroll data.
This guide is general information about Superannuation Guarantee obligations in Australia — not tax or legal advice. Employers should confirm their position with a registered tax agent or lawyer before making changes to payroll.
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