Running a small business is a constant balancing act. The last thing you need is a headache from payroll and superannuation compliance. But getting this right is more than just a box to tick. Itโs a core part of your business’s financial health and a promise to your team about their financial future.
Superannuation (or ‘super’) is a compulsory retirement savings system for employees. As an employer, you are legally bound to pay a minimum amount into your employees’ chosen super fund, on top of their regular salary or wages. The Australian Taxation Office (ATO) has real-time access to superannuation payments and payroll data, so accuracy is a must.
Missing a deadline or underpaying can result in penalties and charges, which is the last thing any business owner wants. Getting your payroll right from the start can save you a lot of time, stress, and money down the track.
What is the minimum superannuation guarantee contribution rate?
The minimum superannuation guarantee (SG) rate is the percentage of your employeeโs ordinary time earnings (OTE) that you must pay into their super fund. OTE includes things like their base pay, commissions, and some allowances. As of 1 July 2025, the SG rate is 12%. Itโs set to increase incrementally each year until it reaches 12%. You may also have to pay a higher rate if your award or an agreement says so.
How often should businesses make superannuation contributions?
While some employers choose to pay super more frequently, the law requires you to pay contributions at least four times a year, by specific quarterly due dates. These payment due dates are 28 days after the end of each quarter. It’s crucial that the payment is received by the employeeโs super fund by this date, not just sent.
Here are the quarterly payment due dates:
- 1 July – 30 September: Due 28 October
- 1 October – 31 December: Due 28 January
- 1 January – 31 March: Due 28 April
- 1 April – 30 June: Due 28 July
If a due date falls on a weekend or public holiday, you can make the payment on the next business day.
These standards are expected to change come 1 July 2026 with the upcoming Payday Super laws.
What does Payday Super mean for your business?
Starting 1 July 2026, the government is making a shift to what they call Payday Super. This means instead of paying your employees’ super once a quarter, you’ll need to pay it at the same time you pay their wages.
If you’re running a small business, you’ve probably heard a bit about it, and you might be wondering what all the fuss is about. I get itโit can feel like a lot to keep up with.
For a lot of us, this is a major change from how weโve always done things. Paying super more often will change your cash flow and put a sharper focus on getting your payroll right every single time. It’s a move to ensure employees get their retirement savings on time.
What happens if a business misses a superannuation payment deadline?
If you miss a super payment deadline, itโs not just a slap on the wrist. You become liable for the Superannuation Guarantee Charge (SGC). This charge is made up of a few things:
- The unpaid super amount.
- Interest on the outstanding amount (currently 10%).
- An administration fee of $20 per employee, per quarter.
The SGC is not tax-deductible, which means it costs you even more in the long run. To avoid all this, the best way forward is to pay your super contributions on time.
How can Payroller help small businesses with superannuation compliance?
Feeling overwhelmed by superannuation? Our payroll software is here to help you turn those pain points into “finally, that’s easy” moments. The ATO requires all employers to use SuperStream, a standard for sending super payments and data electronically. Our platform is built to be SuperStream-compliant, which means you can handle both the money and the data in one simple transaction.
We make it easy to manage all your super contributions. We help you with things like:
- Calculating the correct superannuation guarantee contribution rate based on your employeeโs earnings.
- Sending your super payments and reporting them to the ATO through Single Touch Payroll (STP).
- Managing employee records, including their tax file number (TFN) and super fund details.
- Accessing superannuation reports to keep a pulse on your business’s financial health and track your payments.
Our goal is to give you back your time so you can focus on growing your business instead of getting bogged down in paperwork and legislation.