Superannuation Guarantee (SG)

Superannuation Guarantee (SG) is the minimum super an Australian employer must pay into an eligible worker’s super fund on top of wages.

Most people shorten Superannuation Guarantee to “super”. It is an employer contribution that helps build a worker’s retirement savings. It is not usually taken out of the employee’s take-home pay; it is an extra cost the employer needs to allow for when running payroll.

For salary and wages paid from 1 July 2025, the general SG rate is 12% of an eligible worker’s ordinary time earnings (OTE). Ordinary time earnings are broadly the pay for ordinary hours of work, before tax, although awards, agreements and unusual pay items can change what needs checking. The ATO’s how much super to pay guidance is the best official reference for current calculation rules.

Where Superannuation Guarantee appears

You will usually see SG in payroll rather than in everyday bookkeeping. It can appear in:

employee setup screens, where super fund and pay item details are recorded
draft pay runs, payslips and payroll reports
Single Touch Payroll (STP) reporting, because super information is reported alongside wages and PAYG withholding
super payment batches sent through a superannuation clearing house
accountant or bookkeeper questions about payroll liabilities, cash flow and year-end payroll finalisation
contractor reviews, because some contractors with an Australian Business Number (ABN) may still be treated as employees for SG purposes

How Superannuation Guarantee works in practice

First, work out whether the worker is eligible. In general, employees aged 18 or over are covered regardless of how much they earn. Employees under 18 are covered if they work more than 30 hours in a week. The old $450 monthly earnings threshold no longer applies.

Next, calculate the minimum contribution. For ordinary pay runs before Payday Super starts, the simple version is:

SG amount = ordinary time earnings x 12%

Then pay the contribution to the correct super fund. That might be the employee’s chosen fund, a stapled super fund, or your default fund if the rules allow it. If you pay through a commercial clearing house, allow time for the payment to reach the employee’s fund.

For salary and wages paid before 1 July 2026, SG is still generally due at least quarterly. The employee’s super fund must receive the payment by the quarterly deadline shown in the ATO’s super payment due dates.

Quarter	Period	SG payment due date
1	1 July to 30 September	28 October
2	1 October to 31 December	28 January
3	1 January to 31 March	28 April
4	1 April to 30 June	28 July

From 1 July 2026, Payday Super changes the timing: employers need to pay SG at the same time as salary and wages rather than waiting until the end of the quarter.

Simple example

Rina works for a small design studio and earns $1,200 in ordinary time earnings for a weekly pay run.

The SG calculation is:

$1,200 x 12% = $144

The employer pays Rina her wages through payroll and also needs to contribute $144 to her super fund. If the studio has ten employees, those SG amounts can become a noticeable cash-flow item, so they should be planned in the same way as wages, rent and supplier bills.

Why Superannuation Guarantee matters

For employees, SG is part of their employment entitlement and helps build retirement savings over time. For employers, it is a payroll obligation that needs correct setup, timely payment and clean records.

Late, missing or wrong-fund payments can lead to the super guarantee charge, extra lodgement work and avoidable cost. This is why SG should not be treated as a once-a-quarter afterthought. It belongs in the regular payroll review, next to gross wages, PAYG withholding, leave and net pay.

SG also affects cash planning. If you use a cash budget, include expected super payments so the business is not surprised by a quarterly payment or the move to Payday Super. In bookkeeping terms, unpaid super is similar to an accounts payable item: the business has an obligation that still needs to be settled.

Easy way to remember it

Wages go to the worker now. Superannuation Guarantee goes to the worker’s future account.

How Gimbla can help

Gimbla helps Australian small businesses keep SG close to the pay run instead of managing it in a separate spreadsheet. You can set up employee details, add Superannuation Guarantee as a pay item, review super amounts before approval, and keep payroll records alongside the rest of your accounts.

If you are setting up payroll, start with the create an employee guide. If you pay contractors who may need super, see the paying super for contractors guide. For the broader reporting workflow, Gimbla’s Single Touch Payroll software keeps payroll, STP and super-related checks in one place.

Helpful Gimbla guides

In short

Superannuation Guarantee is the compulsory employer super contribution for eligible workers. For Australian small businesses, the practical job is to calculate it correctly, pay it to the right fund on time, and keep the payroll records clear.