What Is The Current Rate Of Superannuation In Australia? Employer’s Guide

Superannuation is a core part of your responsibilities as an Australian employer. Getting it right protects your team’s retirement savings and keeps your business compliant with the ATO’s rules.

If you’re asking “what is the current superannuation rate in Australia?” or “what percentage is super this year?”, you’re in the right place. This guide explains the current rate, what it applies to, who you must pay, the timing rules, and the common traps to avoid - all in plain English.

By the end, you’ll know exactly how to factor super into payroll, what to watch out for, and how to tighten up your documents and processes so you’re confident every pay run is compliant.

Superannuation Basics: What Employers Must Do

Superannuation (often just “super”) is a compulsory retirement saving system. As an employer, you must contribute a minimum percentage of each eligible worker’s ordinary time earnings (OTE) to a complying super fund.

In practice, that means:

• Identifying who is eligible (employees and some contractors).
• Calculating super on ordinary time earnings (not overtime).
• Paying at least the minimum rate by the quarterly due dates.
• Paying via SuperStream to a valid, chosen fund (including a “stapled” fund if relevant).
• Keeping clear records and showing super on payslips.

It’s also important your contracts and policies use clear language on “plus super” versus “including super,” because that affects budgeting and salary negotiations. If you’re updating or issuing contracts, it’s wise to lock this down in your Employment Contract and mirror it in your internal policies.

The Current Superannuation Rate (And Upcoming Changes)

From 1 July 2024, the mandatory superannuation guarantee (SG) rate is 11.5% of ordinary time earnings.

• Current SG rate: 11.5% (from 1 July 2024).
• Next scheduled increase: 12% from 1 July 2025 (plan your payroll budgets now).

Whether an employee’s package is “plus super” or “inclusive of super” matters. If you offer “plus super,” the contribution rises in step with the SG rate. If it’s “inclusive,” the take-home and super split will adjust when the rate increases unless you adjust the package.

Also note the quarterly maximum super contribution base. Above that cap, you generally don’t have to pay SG for that quarter on the excess. This cap changes periodically, so check the current figure each financial year when reviewing remuneration for high earners.

What Counts As Ordinary Time Earnings?

Super is calculated on ordinary time earnings. OTE generally covers what someone earns for their ordinary hours of work, and excludes overtime.

Amounts commonly included in OTE

• Base salary or wages for ordinary hours (not overtime).
• Most allowances that relate to ordinary hours.
• Commissions and piece rates.
• Shift loadings and some bonus payments tied to ordinary work.

If you’re weighing up edge cases, it helps to start with a refresher on ordinary time earnings. Bonuses can also be tricky, so consider how the bonus is structured and documented - this can affect whether SG applies. If you regularly pay incentives, review your approach against superannuation on bonuses and keep your bonus terms consistent with payroll settings.

Amounts generally excluded from OTE

• Overtime payments.
• Expense reimbursements.
• Some termination components (for example, certain ex gratia or genuine redundancy amounts).
• Some payments on termination, including many payments in lieu of notice - always check how your specific payment in lieu of notice is characterised in the contract and payroll.

Annual leave loading can be a grey area. In many cases it’s treated as OTE unless you can show it is solely to compensate for lost overtime opportunities. Ensure your policies and contracts clearly explain the purpose of annual leave loading if you pay it.

Who You Must Pay And When

Most employees are eligible for SG, including full-time, part-time and casual staff. There’s no monthly minimum threshold - the $450 threshold was removed.

Under 18s and students

You must pay SG to workers under 18 if they work more than 30 hours in a week. Keep good timesheets to evidence eligibility.

Contractors “mainly for labour”

Some contractors are treated as employees for SG if they’re paid mainly for their labour (even if they invoice with an ABN). If they’re personally doing the work and not simply supplying a product or delegating to others, you may need to pay SG. Where you engage individuals, set clear terms in your Contractors Agreement and review the practical working arrangement against the “mainly for labour” test.

Choice of fund and stapled funds

You must offer eligible employees a choice of super fund. If they don’t choose, you must request their “stapled” fund (a linked fund that follows the employee) and pay contributions into that fund. Only use your default fund if there’s no stapled fund and no choice form returned.

Due dates and frequency

• SG must be received by the fund at least quarterly: 28 October, 28 January, 28 April and 28 July.
• Many employers pay super each pay cycle to smooth cash flow and reduce late risks.
• Payments must be made via SuperStream (most modern payroll systems handle this automatically).

Common Traps, Caps And Penalties

Super mistakes can be costly, but most are preventable with good systems and clear contracts. Here are the issues we see most often.

Paying late (even by a day)

If contributions are not received by the fund by the due date, you must lodge a Superannuation Guarantee Charge (SGC) statement and pay the SGC. This can be more expensive than just paying the missed super because:

• The shortfall is recalculated on salary and wages (not just OTE), which can increase the amount due.
• Nominal interest applies from the start of the quarter.
• An administration fee per employee per quarter applies.
• SGC amounts are generally not tax-deductible (unlike on-time SG contributions).

There’s no “minor grace period,” so build in a buffer to ensure funds land on time, not just get sent on time.

Missing the maximum contribution base

High earners can exceed the quarterly maximum contribution base. Above that amount, SG generally isn’t required for that quarter. Make sure your payroll has the current base set correctly each year.

Mistakes with OTE mapping

Incorrect earnings categories in payroll (for example, marking certain allowances as non-OTE when they should be OTE) can create shortfalls. Reconcile your pay items against your OTE rules at least annually and document them in your workplace policy or payroll procedures.

Contractors incorrectly treated as exempt

If a contractor arrangement functions like employment in substance, SG may still be required. Check the engagement structure regularly, especially if the role changes over time.

Record-keeping and payslips

Keep records of calculations, funds, payment dates, and employee choices. Payslips must show super amounts and the fund name. These details are often captured in a Staff Handbook so everyone understands how super is handled.

Salary sacrifice and sacrifice integrity

Salary sacrifice can be tax-effective for employees, but set it up correctly. Contributions that are genuinely additional to the mandatory SG are treated differently to arrangements that reduce OTE. Ensure your employment terms clearly state whether SG is calculated on pre- or post-sacrifice OTE and that payroll handles it consistently.

Tax treatment

On-time employer SG contributions are typically tax-deductible to your business. SGC payments are not. Keeping to the quarterly deadlines isn’t just a compliance duty - it also affects your tax position.

Documents And Best Practice For Compliance

Clear documents and robust payroll processes make super simple to manage as you grow.

• Employment Contract: State whether remuneration is “plus super” or “inclusive of super,” define OTE for your business, and specify the timing of payments to align with your payroll cycle. You can set these terms in your Employment Contract.
• Contractors Agreement: Where you engage individuals with ABNs, clarify the nature of the engagement and how super is handled, then ensure the practical reality matches the written terms. See Contractors Agreement.
• Workplace Policy/Payroll Procedures: Document how OTE is mapped in your payroll system, who reviews super each quarter, and the internal cut-off to meet due dates. A written workplace policy helps keep practice consistent.
• Staff Handbook: Include a short section explaining super contributions, choice of fund, and how employees can update their fund details, using your Staff Handbook to make it accessible.
• Bonus/Commission Plans: Ensure your incentive plan terms align with your payroll treatment and OTE settings, especially if your team receives variable pay. Review against superannuation on bonuses.

A short annual “pay items audit” is a smart habit. Review OTE mappings, award variations, the maximum contribution base, and how leave loading and bonuses are set up - then update your documents if needed. If you’re unsure, get tailored advice early so you can correct settings before underpayments accumulate.

Key Takeaways

• The superannuation guarantee is 11.5% of ordinary time earnings from 1 July 2024, scheduled to rise to 12% on 1 July 2025.
• SG applies to most employees and to some contractors paid mainly for their labour; the $450 monthly threshold no longer applies.
• Super must reach the fund by 28 Oct, 28 Jan, 28 Apr and 28 Jul each year; use SuperStream and build in a buffer to avoid late payments.
• Get OTE right for your business: many allowances, commissions and some bonuses are included, while overtime is excluded - review your pay items and policies.
• Watch the maximum super contribution base for high earners, and be aware SGC is generally not tax-deductible if you pay late.
• Lock in clear terms in your Employment Contract, Contractors Agreement and workplace policies so payroll treatment matches your written arrangements.

If you’d like a consultation about your superannuation obligations and employment compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.