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 16 September 2026
Table of contents
Key takeaways
- The super guarantee rate is 12% of an employee's earnings and stays at 12% for the 2026–27 financial year
- Since 1 July 2026, payday super applies, so you pay super at the same time as wages and it must 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
- Late contributions trigger the super guarantee charge, so automating super through payroll software helps you pay the right amount on time
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.
Super is calculated on an employee's ordinary time earnings (OTE), which is what they earn for their normal hours of work. From 1 July 2026, the payday super rules describe this base as qualifying earnings, and the ATO sets out which payments are included. The following generally count towards it:
- base salary and wages for standard hours
- bonuses and commissions
- over-award payments
- allowances and loadings that form part of regular pay
Overtime generally sits outside this base, so you don't pay super on it in most cases. Check the relevant award or agreement if you're unsure how a payment is 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 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.
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, $12 goes to their super fund.
How much super to pay
Working out how much super to pay is simple once you know an employee's 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 pay super at the same time as wages, and the contribution must be received by the employee's fund within seven business days of payday.
A few timing points are worth building into your process:
- the seven business days count from payday, and the money must land in the fund, not just leave your account
- the first contribution for a new employee has a longer window of 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, the super guarantee charge (SGC) applies. Under payday super the SGC is assessed on your shortfall with interest that compounds daily, plus an administrative component, and higher penalties can apply for repeated late payments. The ATO sets out the current payment deadlines and how the charge is worked out.
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 run 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 keeps your cash flow steady 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, especially anyone on a total package whose take-home pay reflects the 12% rate. Clear communication heads off questions when contributions show up more often. 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 every payday, 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, since the money leaves your account every payday
- 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 paying it through SuperStream on time. Xero's online payroll system works out super on qualifying earnings and helps you meet ATO deadlines under payday super. 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 paying the right amount on time, every payday. Xero payroll calculates super on qualifying earnings, lodges contributions through SuperStream and tracks your deadlines so payments reach funds inside the seven business day window. 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 pay super at the same time as wages, and it must reach the employee's fund within seven business days of each payday. A longer 20 business day window applies to the first contribution for a new employee.
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 runs from 1 July 2026 follows the payday timing instead.
Is super paid on overtime?
Overtime generally sits outside the earnings super is calculated on, so it usually doesn't attract super. Always check the relevant award or agreement, as some payments labelled as overtime can still count.
What happens if I pay super late?
Late contributions trigger the super guarantee charge, which adds daily compounding interest and an administrative component to the shortfall. Paying on time through SuperStream-enabled software is the simplest way to avoid it.
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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