Superannuation can feel like one of those behind-the-scenes payroll responsibilities that’s easy to forget—until it becomes a compliance issue. But the truth is, once you understand how the Superannuation Guarantee (SG) works, it’s just another part of supporting your employees and running a responsible business.
In this guide, we’ll walk you through what the SG is, how it’s calculated, when it’s due, and how to make sure you’re meeting your obligations—without turning it into a maths lesson.
What Is the Superannuation Guarantee (SG)?
The Superannuation Guarantee is the minimum amount employers must pay into their employees’ superannuation funds. It’s not optional, and it’s not a benefit on top of a salary—it’s a legal requirement in Australia.
Put simply, it’s your way of helping your team save for retirement. Super is part of the total employment package, just like wages or leave entitlements, and the SG is how that gets delivered.
Who Needs to Receive SG Contributions?
If you're paying an employee aged 18 or over and they earn more than $450 in a calendar month, you’re required to pay them super. Even younger workers under 18 may be eligible, provided they work more than 30 hours a week.
It doesn’t matter whether they’re full-time, part-time or casual—if they meet the criteria, super must be paid.
Here’s a real-world example:
If you hire a part-time shop assistant working three days a week and they earn over $450 a month, you’ll need to pay SG contributions for them. It’s as straightforward as that.
How Is SG Calculated (Without Getting Lost in Numbers)?
Let’s keep this simple.
The SG is a percentage of something called Ordinary Time Earnings (OTE). This is essentially what your employee earns during normal work hours—like wages, salaries, and most allowances or commissions. Overtime usually doesn’t count.
The current SG rate is 11% of OTE. So if an employee earns $1,000 in OTE for a pay period, you’d contribute $110 to their super.
But here’s the good news: you don’t need to crunch these numbers manually. A reliable payroll system will automatically calculate SG for each employee, based on their earnings and award conditions.
When Do SG Contributions Need to Be Paid?
Super isn’t something you pay every week or fortnight like wages. It’s due quarterly, giving you time to process and plan.
Here are the four quarters and their deadlines:
- 1 Jan – 31 Mar → due by 28 April
- 1 Apr – 30 Jun → due by 28 July
- 1 Jul – 30 Sep → due by 28 October
- 1 Oct – 31 Dec → due by 28 January
The easiest way to pay super is through a super clearing house, which lets you make a single payment that gets distributed to each employee’s nominated fund. The ATO offers a free clearing house service for eligible small businesses, which is worth checking out if you’re not already set up.
Why Paying SG Correctly and On Time Matters
Paying SG isn’t just about ticking off a legal box—it’s about doing right by your employees. When you pay on time and correctly, you’re giving your team confidence in their future and showing that you value them.
Failing to meet your SG obligations, on the other hand, can lead to serious consequences. The ATO may charge interest, impose penalties, or even require you to lodge a Superannuation Guarantee Charge (SGC) statement—which is far more complicated (and costly) than getting it right the first time.
Tips to Stay on Top of Super Obligations
Here are a few simple ways to make SG contributions a breeze:
- Automate your payroll using software that calculates SG for you
- Use a super clearing house to handle payments efficiently
- Set calendar reminders a week before each due date
- Review employee classifications to ensure you’re paying super to everyone who qualifies
- Keep detailed records of payments made and funds used
It’s also a good idea to check in on the current SG rate each financial year—it’s set to gradually increase to 12% by 2025.
Final Thoughts: Super Doesn’t Have to Be Super Complicated
Superannuation can feel overwhelming at first glance, but once you get into the rhythm of things, it becomes a seamless part of your payroll routine. With the right tools, systems, and awareness, you can stay compliant while supporting your team’s long-term financial well-being.
And remember—getting it right from the start saves you a lot of stress down the track.
