/Compliance
Compliance 8 min read

Super Guarantee 2026: What Every Australian Employer Must Know

"The SGC penalty is not tax-deductible. Miss one payment and find out why that matters."

The SGC penalty is not tax-deductible. Miss one payment and find out why that matters. Every dollar of SGC you pay costs you more than a dollar — because you can't claim it back from the taxman. Paying super late is one of the most expensive mistakes an Australian employer can make.

What Counts as Ordinary Time Earnings (OTE)

Super is calculated on OTE — which is broader than base salary:

  • Ordinary hours worked
  • Over-award payments
  • Shift loadings (in some awards)
  • Allowances (in some cases)
  • Annual leave and personal leave payments
  • NOT overtime (generally)
  • NOT discretionary bonuses (in most cases)
  • NOT genuine redundancy payments

Miscalculating OTE is the most common super compliance error. If you're unsure what to include, use the ATO's OTE tool or check the applicable Modern Award.

Stapled Super Funds — The 2021 Rule Change

Since 1 November 2021, if a new employee doesn't nominate a super fund, you must request their "stapled fund" from the ATO via Online Services before defaulting to your default fund. The stapled fund is the employee's existing fund that follows them between jobs. Failure to request the stapled fund when required can result in the ATO treating you as non-compliant.

How XIntelliSync Handles Super

XIntelliSync's Payroll Agent calculates super at the correct rate (12% for 2025–26, increased from 11.5% on 1 July 2025) on OTE for each employee each pay run. It generates a super remittance summary before each quarterly payment due date, and produces ABA files for employer super fund contributions. Final payment is authorised by you through your bank portal — no payments are initiated automatically.

Common Questions

What is the Super Guarantee rate for 2026?

The Super Guarantee (SG) rate for 2025–26 is 12% of ordinary time earnings (OTE). The rate increased from 11.5% to 12% on 1 July 2025. This applies to all eligible employees — full-time, part-time, and casual employees of any earnings level (the $450/month threshold was removed in July 2022).

What are the Super Guarantee due dates?

Super must be paid quarterly: Q1 (Jul–Sep) by 28 October, Q2 (Oct–Dec) by 28 January, Q3 (Jan–Mar) by 28 April, Q4 (Apr–Jun) by 28 July. Late super payments are subject to the Superannuation Guarantee Charge (SGC) — which is not tax-deductible. SGC includes the shortfall, interest (10% pa), and an admin component.

What is the SGC penalty for not paying super on time?

If you miss a super payment, you must lodge a Superannuation Guarantee Charge (SGC) statement with the ATO and pay the SGC. The SGC includes: the unpaid super (calculated on total salary, not just OTE), nominal interest at 10% pa from the start of the quarter, and a $20 per employee per quarter admin fee. Critically, SGC is NOT tax-deductible — your regular super contributions are. Paying late costs you more than just interest.

Must I pay super for casual employees?

Yes. Since 1 July 2022, the $450/month earnings threshold was removed. All eligible employees — including casuals earning any amount — are entitled to super. Exceptions: employees under 18 working fewer than 30 hours per week, some apprentices, and private/domestic workers working fewer than 30 hours per week.

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