If you’re a small business owner in Australia and you hire employees—or even contractors in some cases—you have superannuation obligations. It’s not the most thrilling part of running a business, but it’s an essential one. Let’s break it down so you can stay compliant, avoid penalties, and keep things running smoothly.
What is Superannuation?
Superannuation (or “super”) is money you pay on behalf of your employees to help them save for retirement. There are several different types of superannuation contributions.
The most common, and most important type for employers to understand, is the type of contributions called ‘Super Guarantee’ (SG) contributions. This is the statutory (required by law) contribution that every employer must make on behalf of their employees. The rate (as a percentage of an employee’s ordinary earnings) is set by the government.
The current rate (as of June 2025) is 11.5% of an employee’s ordinary time earnings. From 1 July 2025, the super guarantee rate will increase to 12.0% of an employee’s ordinary time earnings.
Who Do You Need to Pay Super For?
You must pay super for:
- Employees, whether full-time, part-time, or casual
- Some contractors, especially if the contract is primarily for their labour (yes, even if they have an ABN)
💡 Tip: If you’re unsure whether a contractor qualifies for super, use the ATO’s employee/contractor decision tool.
When is Super Due?
Super payments are due quarterly, but many businesses choose to pay monthly to keep on top of it. The due dates are:
- 1 Jan – 31 Mar → due 28 April
- 1 Apr – 30 Jun → due 28 July
- 1 Jul – 30 Sep → due 28 October
- 1 Oct – 31 Dec → due 28 January
Late payments = penalties! If you miss the deadline, you have to lodge a Superannuation Guarantee Charge (SGC) statement with the ATO and pay extra fees—ouch.
How Do You Pay Super?
Use a Superannuation Clearing House, such as the ATO’s free Small Business Super Clearing House (SBSCH), your accounting software, or your super fund’s online platform. Make sure the payment is received by the fund before the due date—not just sent.
Staying on Top of It
Super can feel overwhelming, especially when juggling all the other parts of your business. That’s where Boss of Your Books can help.
Our low-cost membership for Aussie small business owners includes monthly virtual co-working sessions, where you can do your bookkeeping alongside other business owners—and ask questions in real time. You’ll also get guidance on super obligations, payroll tips, and more!
📅 Stop leaving it to the last minute. Join our community and get it done with support.
