Super guarantee rate 2026: payday super and how much to pay
The super guarantee rate is 12% for 2026. Learn payday super rules and how much to pay employees.
Written by Naomi Lai— Small business & finance writer. Read Naomi's full bio
Published Wednesday 23 September 2026
Table of contents
Key takeaways
- The super guarantee rate is 12% of an employee's qualifying earnings and stays at 12% for the 2026–27 financial year
- Since 1 July 2026, payday super applies, so you generally need to pay super alongside each pay cycle and it must generally reach each employee's fund within seven business days of payday
- The maximum contribution base is now a single annual figure of $270,830 for 2026–27, replacing the old quarterly cap
- If super isn't received by an employee's fund within the required timeframe, employers may need to take steps to correct the payment and notify the ATO
What is the superannuation guarantee?
Superannuation guarantee (SG) is Australia's compulsory retirement savings system. It requires you to pay a set percentage of your eligible employees' earnings into their super fund, and the Australian Taxation Office (ATO) oversees the rules.
From 1 July 2026, super contributions are calculated using qualifying earnings, or QE. Employers calculate super as 12% of an employee’s qualifying earnings for each pay period. Payroll software can help calculate the right amount of super based on the earnings included in each pay run.
Qualifying earnings use ordinary time earnings (OTE) as their base and include some additional categories, such as:
- pay for ordinary hours, including many types of paid leave and some allowances and bonuses
- all commissions paid to an employee
- salary sacrifice amounts that would have been qualifying earnings if paid as cash
- payments to some contractors who are treated as employees for super purposes
For many employers, the move to qualifying earnings won't substantially change the amount of super they pay, but it's important that payroll is set up correctly so the right payments are included.
Overtime generally isn't included in qualifying earnings when it's clearly identified and paid as overtime. Check the relevant award, agreement or ATO guidance if you're unsure how a payment should be classified.
Who is eligible for super guarantee?
Eligibility comes down to an employee's age and hours worked. The old $450 monthly earnings threshold was removed in 2022, so most workers now qualify regardless of earnings, as the ATO sets out in its guidance on who is eligible for super. You must generally pay super for:
- employees aged 18 and over, whatever they earn
- employees under 18 who work more than 30 hours in a week
These rules cover full-time, part-time and casual employees. Some contractors may also be treated as employees for super purposes.
What is the super guarantee rate for 2026?
The super guarantee rate is 12%, and it stays at 12% for the 2026–27 financial year. The rate rose in steps over recent years before settling at 12% on 1 July 2025, in line with the ATO's super guarantee percentage rates:
- 2022–23: 10.5%
- 2023–24: 11%
- 2024–25: 11.5%
- 2025–26 onwards: 12%
In plain terms, for every $100 of qualifying earnings you pay an employee, you generally need to contribute an additional $12 in super.
How much super to pay
Working out how much super to pay is simple once you know an employee's qualifying earnings. You multiply their qualifying earnings for the pay period by the 12% rate.
Calculating your super guarantee contributions
The formula is the same whatever your pay cycle: qualifying earnings × 12% = the super you owe for that payday. Here's how it looks for someone paid $5,000 a month:
- monthly qualifying earnings: $5,000
- super for that pay run: $5,000 × 12% = $600
Under payday super, you pay that $600 alongside each set of wages rather than banking it up for the quarter.
Understanding the maximum contribution base
The maximum contribution base caps the earnings you have to pay super on for high earners. From 1 July 2026, it's an annual figure rather than a quarterly one, in line with the ATO's maximum contribution base for payday super.
- the annual maximum contribution base for 2026–27 is $270,830
- once you've paid super on that much in qualifying earnings for the year, you don't have to pay SG on the rest
- this caps compulsory employer super at $32,499.60 per employee for the year
You can still choose to pay super above the base, and any extra you owe under an award or enterprise agreement is separate from this cap.
When to pay super contributions
Payday super changed the timing of contributions from 1 July 2026, and both the ATO and the Fair Work Ombudsman now set out the same core rule.
You generally pay super contributions alongside each pay cycle, rather than quarterly. Super contribution must generally be received by the employee's fund within seven business days of payday, unless an extended timeframe applies.
The ATO considers a contribution on time once the fund has received both the money and the information needed to allocate it.
A few timing points are worth building into your process:
- The seven business days count from payday, and the money must be received by the fund within that timeframe, not just leave your account
- When paying into an employee’s super fund for the first time, most commonly for a new employees or when an employee changes fund, employers will generally have up to 20 business days
- The ATO's Small Business Superannuation Clearing House has closed, so you need SuperStream-enabled software or another provider to pay
The old quarterly due dates of 28 October, 28 January, 28 April and 28 July applied for the last time in 2025–26. They now only matter for reconciling super earned up to 30 June 2026. You can read the current timing rules on the ATO's About Payday Super page.
If a contribution doesn't reach the fund in time, you may need to take steps to correct the payment and notify the ATO. The ATO has published guidance outlining a practical, risk-based approach to compliance during the first year of payday super. If a late payment occurs, act quickly to rectify it and consider speaking with your tax or BAS agent about any further steps required.
Impact of the super guarantee rate on employers
The rate reached 12% on 1 July 2025 and holds at 12% for 2026–27, so there's no fresh rate rise to budget for this year. The change that affects your cash flow now is timing: super leaves your account every pay cycle instead of once a quarter.
Contract type still decides who carries the 12% cost:
- total package (salary inclusive of super): the 12% comes out of the employee's overall package, so their take-home pay is lower
- plus super: you pay the 12% on top of wages, so it's an added cost to your business
For a team of five staff on plus super arrangements at $100,000 each, that's $60,000 in super across the year, now spread across every payday. Mapping those payments against your pay calendar can help you plan and manage cash flow through the year.
Practical steps for employers
A few practical steps help you meet the payday super timing and keep your records clean.
Communicate with employees
Let your team know how super appears on their payslips and how payday super affects the timing of contributions. Clear communication can head off questions when contributions show up more frequently. You might send a short email, cover it in a team meeting or point people to a contact for follow-up questions.
Review cash flow planning
Because super now goes out alongside each pay cycle, it helps to plan the timing rather than the quarterly lump sum. Work through these steps:
- Work out your total super cost as 12% of qualifying earnings across your team
- Map each super payment against its pay cycle
- Update your 2026–27 budget and cash flow forecasts to reflect the more frequent payments
Xero's calculators can help you sense-check these figures as you plan.
Consider payroll software
Payroll software takes the manual work out of super by calculating each contribution and manage payments through SuperStream.
Xero's online payroll system calculates super on qualifying earnings and is designed to help you meet payday super timelines, with contributions typically paid to funds within four business days. You can learn more about the reform on Xero's Payday Superannuation hub.
Seek professional advice
Complex contracts, mixed pay cycles or high earners near the contribution base are worth a professional opinion. You can find an accountant or bookkeeper to review your setup, or check the Tax Practitioners Board public register for a registered tax or BAS agent.
Manage super guarantee and payday super with Xero
Once you understand your obligations, the ongoing job is calculating the right amount and making sure contributions each employee’s super funds within the required timeline
Xero payroll calculates super on qualifying earnings, helps you submit contributions through SuperStream and is designed to support payday super timelines. For more background, browse Xero's small business guides.
New to Xero? You can get one month free and see how it fits your payroll.
FAQs on the super guarantee rate and payday super
Here are quick answers to common questions about the super guarantee rate and payday super.
What is the super guarantee rate for 2026?
The super guarantee rate is 12% of qualifying earnings, and it's unchanged for the 2026–27 financial year. The government has not scheduled any further increases beyond 12%.
When do I have to pay super under payday super?
From 1 July 2026, you generally need to pay Superannuation Guarantee contributions alongside each pay cycle.
Super contributions must generally be received by the employee’s super fund within seven business days of payday, unless an extended timeframe applies.
When paying into an employee’s super fund for the first time, most commonly for a new employee or when an employee changes fund, you will generally have up to 20 business days.
Do I still use the quarterly super due dates?
The quarterly dates only apply to super earned up to 30 June 2026, so you'll use them just to reconcile older contributions. All super for pay cycles from 1 July 2026 follows the payday timing instead.
Is super paid on overtime?
In most cases, overtime that is clearly identified and paid at overtime rates isn’t included in qualifying earnings, so super isn’t calculated on those amounts.
If an employee’s ordinary and overtime hours aren’t clearly separate in their award, agreement or contract, the ATO may treat all hours as ordinary hours, in which case super may be calculated on all of those earnings.
What happens if I pay super late?
If super isn't received by the employee's fund within the required timeframe, you may need to take steps to correct the payment and notify the ATO.
The ATO has published guidance outlining a practical, risk-based approach to compliance during the first year of payday super. Employers who make genuine efforts to meet their obligations and resolve issues quickly are considered lower risk than employers who make no attempt to pay or leave issues unresolved.
If a late payment occurs, act quickly to rectify it and consider speaking with your tax or BAS agent about any further steps required.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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