You must pay the super guarantee (SG) for eligible employees. Since 1 July 2022 the old $450-per-month earnings threshold is gone — pay SG regardless of how much they earn in a month.
Employees under 18 must work more than 30 hours in a week to be eligible.
The SG rate is 12% from 1 July 2025. For earnings paid from 1 July 2026 it is paid on qualifying earnings (QE), each payday, under Payday Super; for earnings paid up to 30 June 2026 it was paid quarterly on ordinary time earnings (OTE).
Who is eligible
The super guarantee applies to most employees — whether they work full-time, part-time or casual. Eligibility no longer depends on how much they earn: the $450-per-month threshold was removed on 1 July 2022, so an employee earning a small amount in a month is still entitled to super on it.
There is one age-based rule to remember. An employee under 18 is only eligible for the super guarantee in a week where they work more than 30 hours. In weeks they work 30 hours or fewer, no SG is payable for that employee.
Some contractors are treated as employees for super. If a contract is wholly or principally for the person's labour, they are an employee for super purposes — and you must pay SG on their qualifying earnings — even if they quote an ABN and invoice you. The label on the arrangement doesn't decide it; the substance of the contract does.
"They have an ABN, so I don't pay super" is a common and costly mistake. Where a contractor is engaged mainly for their own labour, they can still be an employee for SG purposes. When in doubt, work through the ATO's "Work out if you have to pay super" guidance before deciding.
What super is paid on — qualifying earnings
For earnings paid from 1 July 2026, the super guarantee is calculated on an employee's qualifying earnings (QE) for each pay period, not their total earnings. Broadly, QE covers what an employee earns for their ordinary hours of work — including many allowances, over-award payments and paid leave taken during ordinary hours — plus all commissions and amounts salary-sacrificed to super. Overtime (where ordinary hours are clearly identified) and fringe benefits are not qualifying earnings, so super is usually not payable on them. For earnings paid up to 30 June 2026 the base was ordinary time earnings (OTE), a closely related concept — for most employers the switch to QE doesn't change the amount of super payable.
The exact boundaries — especially around overtime, loadings and allowances — matter, and they're where most super errors happen. For the detail on how overtime interacts with OTE, see our companion guide on overtime, leave & super.
The rate (and where it's going)
The super guarantee rate has stepped up over recent years and reached 12% on 1 July 2025, which is now the ongoing rate:
| Period | SG rate |
|---|---|
| 2023–24 | 11% |
| 2024–25 | 11.5% |
| From 1 July 2025 | 12% (ongoing) |
Rates as at 10 July 2026 — confirm the current figure on ato.gov.au before relying on it.
There is also a maximum super contribution base — a cap on the earnings you have to pay SG on for each employee. For earnings paid from 1 July 2026 it is an annual cap: $270,830 of qualifying earnings for 2026–27. Once an employee's qualifying earnings reach the cap, you're not required to pay the super guarantee on the excess for the rest of that financial year. (For earnings paid up to 30 June 2026 the cap was quarterly — $62,500 of OTE per quarter for 2025–26.) The cap is indexed each financial year, so check the current figure on ato.gov.au.
When you must pay it
Under the current rules — Payday Super, for earnings paid from 1 July 2026 — you must pay super guarantee each payday, at the same time as salary and wages. The old quarterly rule (contributions reaching the employee's fund by the 28th day after the end of each quarter) applies only to earnings paid up to 30 June 2026; the final quarterly deadline, for the June 2026 quarter, is 28 July 2026. Paying late — or missing a deadline — means liability for the super guarantee charge.
Payday Super is law and applies to earnings paid from 1 July 2026: super must be paid at the same time as each pay, rather than quarterly. The ATO has published a first-year compliance approach for the transition (PCG 2026/1), but the obligation itself is in force — set up your payroll so contributions go out with every pay run, not once a quarter.
Quick answers
Is there still a $450-a-month threshold?
No. The $450-per-month earnings threshold was removed on 1 July 2022. Eligible employees get the super guarantee regardless of how much they earn in a month.
Do I pay super for contractors?
Sometimes. If the contract is wholly or principally for the person's labour, they're treated as an employee for super purposes and you must pay SG on their qualifying earnings — even if they quote an ABN.
What is the current super rate?
12% from 1 July 2025, and that's the ongoing rate. For earnings paid from 1 July 2026 it applies to an employee's qualifying earnings each pay period; for earnings paid up to 30 June 2026 it applied to ordinary time earnings.
Do employees under 18 get super?
Only if they work more than 30 hours in a week. In weeks an under-18 works 30 hours or fewer, no super guarantee is payable for them.
Super on qualifying earnings, calculated and paid every payday
Ledra Pay works out each employee's qualifying earnings, applies the current super guarantee rate, and pays contributions with every pay run under Payday Super — with an auditable evidence trail behind every figure. Eligibility rules, the removed $450 threshold and the under-18 hours test are handled for you.
See Australian payroll →Government sources
- Australian Taxation Office — Super for employers (overview of employer super obligations).
- ATO — Work out if you have to pay super (eligibility, under-18 test, contractors).
- ATO — Ordinary time earnings and super support (the SG base for earnings paid up to 30 June 2026).
- ATO — What payments are qualifying earnings (the SG base for earnings paid from 1 July 2026).
- ATO — Payday superannuation (law status; per-payday SG from 1 July 2026; PCG 2026/1 first-year compliance approach).
- ATO — How much super to pay (quarterly rules — for earnings paid up to 30 June 2026 only).
- ATO — Maximum super contribution base (quarterly cap — for earnings paid up to 30 June 2026 only).
- ATO — Maximum contributions base (annual cap on qualifying earnings from 1 July 2026 — $270,830 for 2026–27).