# What is Superannuation Guarantee (SG)?

Country: Australia

Mandatory employer contribution to an employee's superannuation fund. The rate is 12% since 1 July 2025 (11.5% for FY2024–25). From 1 July 2026 under Payday Super it must be paid on every payday and received by the fund within 7 business days; before that it was paid quarterly by the 28th of the month following each quarter.

## Current rate (Each payday from 1 July 2026 (quarterly dates 28 Oct, 28 Jan, 28 Apr, 28 Jul applied until the quarter to 30 June 2026))

12% (from 1 July 2025; 11.5% in FY2024–25)

## Example

An employee earning A$100,000 ordinary time receives A$12,000 a year (FY26) into their nominated super fund, paid with each payday from 1 July 2026.

## How Superannuation Guarantee (SG) works in Australia

Super Guarantee applies to ordinary time earnings (OTE): generally salary excluding overtime, but including bonuses, allowances, and paid leave. The Maximum Super Contribution Base (MSCB) caps SG-eligible earnings at A$65,070 per quarter for FY25.

From 1 July 2026, Payday Super applies: employers pay SG with each payroll run rather than quarterly. Late SG triggers the Super Guarantee Charge (SGC), which the ATO assesses. It is deductible for qualifying earnings days from 1 July 2026, but the interest (compounding daily at the general interest charge rate) and the 25% or 50% penalties on it are not.

Source: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay

## Related terms

- [Single Touch Payroll (STP)](https://accounts-os.com/au/glossary/stp-australia)
- [PAYG Withholding](https://accounts-os.com/au/glossary/payg-withholding)