Superannuation – what you must pay and when

Super is a retirement system.

As an employer, you are required to contribute a percentage of your employee’s earnings to their super fund. This money is invested over time and is generally not accessible until retirement.

Superannuation is not included in wages — it is paid on top.

What do you actually have to pay?

You must pay super on eligible earnings (Ordinary Time Earnings).

The rate is currently increasing to 12%. This is calculated on top of wages — not taken from them.

When super must be paid

Super is currently paid at least quarterly, with strict deadlines.

From 1 July 2026, this changes. Super will need to be paid at the same time as wages, removing the quarterly timing. This will affect how payroll and cash flow are managed.

More detail is covered in the article on Payday Super and the upcoming changes.

What do you need from your employee?

Before you can pay super, you need:

• their chosen super fund
• a completed super choice form

If an employee does not choose a fund, you must use a default fund that meets legal requirements.

Where businesses get it wrong

Most issues come down to timing and accuracy. Common problems include:

• paying super late
• calculating the wrong amount
• not allowing for processing time when making payments

In practice, super is not considered paid when you send it — only when it reaches the employee’s fund. This is where many businesses get caught.

What happens if you get it wrong?

If super is not paid correctly or on time, additional obligations apply. You may be required to pay the Superannuation Guarantee Charge (SGC), which includes:

• unpaid super
• interest
• administration fees

This can also affect the tax treatment of the original payment.

Final note

With changes coming from 1 July 2026, how and when you pay super will become part of your payroll process. Understanding these obligations now helps you prepare early.