If you employ staff, you must pay super guarantee on top of their wages. The rate is 12% of their ordinary earnings, and from 1 July 2026 the big change is Payday Super, which means you must pay that super at the same time as wages rather than quarterly. Paying late or short can be expensive, so here is what employers need to know in plain English.
Who do I pay super for, and how much?
You generally pay super for employees, and for some contractors who are paid mainly for their labour. The rate is 12% of ordinary time earnings (broadly, their regular wages, not most overtime). The old $450 monthly minimum has been removed, so super applies from the first dollar for eligible workers. It is a good idea to check whether your contractors are caught, because getting this wrong is a common mistake.
Payday Super: the change from 1 July 2026
This is the shift employers need to prepare for. From 1 July 2026, super must be paid at the same time as salary and wages, with contributions reaching the employee’s fund within a short window of each payday, instead of the old quarterly deadlines. It means your payroll and cash flow need to account for super on every pay run, and it gives the ATO near real-time visibility of late payments.
Why paying on time matters
If you miss the deadline, you can become liable for the super guarantee charge, which includes the shortfall, interest and an administration fee, and unlike normal super contributions, the charge is not tax deductible. Setting up your payroll to pay super automatically and on time is the simplest way to stay out of trouble.
How MS Financial Services can help
We set up payroll to handle super correctly and on time under Payday Super. See our Accounting & Bookkeeping and Tax & Compliance services, or get in touch.
Frequently Asked Questions
What is the super guarantee rate?
It is 12% of an employee’s ordinary time earnings, which reached 12% on 1 July 2025 and is unchanged for 2026-27.
Do I pay super for contractors?
Sometimes. If a contractor is paid mainly for their labour, they can be treated as an employee for super purposes. It is worth checking, as misclassifying is a common error.
What is Payday Super?
From 1 July 2026, employers must pay super at the same time as wages, with contributions reaching the employee’s fund within a short window of each payday, replacing the old quarterly deadlines.
What happens if I pay super late?
You can be liable for the super guarantee charge, which includes the shortfall, interest and an administration fee, and is not tax deductible. Paying on time avoids this.
Is there still a $450 monthly threshold?
No. The old $450 minimum has been removed, so super applies from the first dollar for eligible workers.