When super guarantee is required
If you pay a worker that is eligible for super guarantee, you must work out contributions using at least the super guarantee rate. If you do not pay enough super guarantee on time and to the right fund, you will be liable to pay a tax called the super guarantee charge.
Things to consider about paying super:
- Amount of earnings – you pay super regardless of how much you pay your employee (up to the maximum contribution base).
- Employee age – for employees who are
- 18 years or older, you pay super regardless of how many hours they work
- under 18 years old, you pay super if they work more than 30 hours in a week.
- Rate – the super rate is 12% (the super rate for Norfolk Island is 11% from 1 July 2026 and 12% from 1 July 2027).
- How it is calculated – use your employee's qualifying earnings to work out the minimum contribution.
- How frequently you need to make super contributions – from 1 July 2026, you pay super guarantee to your employee's super fund for each payday. It generally needs to be received by the fund with sufficient information to allocate the payment within 7 business days after pay.
- What to do when you miss a payment or make a late payment
- if you have not received an assessment for the super guarantee charge from us, pay the outstanding amount to the super fund as soon as possible
- if you have received an assessment from us (which will be for more than you would have otherwise paid if you'd paid on time), you will need to pay the assessment amount to us.
Eligibility
Generally, all employees are eligible for super guarantee. It doesn't matter if the employee is:
- full time, part time or casual
- receiving a super pension or annuity while working (this includes employees on transition to retirement)
- a temporary resident, such as a backpacker
- a company director
- a family member working in your business.
Example: occasional employers
Each summer, Samir – a 32-year-old seasonal fruit picker – works at the ABC produce farm. He usually works 15 hours a month for 3 months, earning $435 a month before tax.
In 2025–26, Samir is eligible for super guarantee, which his employer pays at 12% of his qualifying earnings.
End of exampleEmployees under 18
Employees under 18 years old are eligible for super guarantee if they work for you for more than 30 hours in a week, regardless of how much you pay them.
As stated in Superannuation Guarantee Determination SGD 93/1, the number of hours worked is the actual number of hours the employee works in that week. You can't average the hours across fortnightly or monthly pay periods.
Example: under 18 years old and working different hours a week
Lily is 17 years old and has 2 jobs – working at a hardware shop and a local café.
Lily worked 32 hours in a week at the shop and earned $800 before tax.
Lily also works 6 hours a month in the café, earning $150.
As Lily has worked:
- more than 30 hours in one week in the hardware store, this employer pays her super guarantee for this week
- not more than 30 hours in a week in the café, this employer doesn't pay her super guarantee for this work.
Domestic or private workers
A domestic or private worker does work:
- relating personally to you (not to a business of yours)
- relating to your home, household affairs or family – such as a nanny, housekeeper or carer.
Domestic or private workers are eligible for super guarantee if they work for you for more than 30 hours in a week, regardless of how much you pay them.
Example: domestic or private worker and working less than 30 hours a week
Noah works in a private arrangement as a housekeeper for Scarlett and he does all the cleaning and cooking at her home for 25 hours a week.
As Noah has worked less than 30 hours in one week, Scarlett doesn't need to pay him super guarantee regardless of how much she pays him.
End of exampleNDIS plan
You may also have to pay super guarantee for a domestic worker or carer if the following both apply:
- you have a National Disability Insurance Scheme (NDIS) plan that you manage yourself
- you use your funds to hire a carer or other domestic worker.
Independent contractors
Independent contractors who are paid mainly for their labour are eligible for super guarantee.
You calculate the super guarantee on the labour component of their invoice.
This applies even if they quote an Australian business number (ABN), and regardless of how much they earn.
Sportspeople, performers and film makers
Individuals who undertake any of the following activities are eligible for super guarantee on the payments they receive for those activities:
- playing sport, performing music, dance or entertainment, undertaking promotional activities, or an activity involving similar skills
- providing services that are required for the above activities to occur
- filming or recording any television or radio broadcast, or providing services that are required for that filming or recording to occur.
You calculate super guarantee on the component of the invoice that relates to their work.
This applies even if they quote an ABN, and regardless of how much they earn.
International workers
Your worker is eligible for super guarantee even if they are a temporary resident, such as a backpacker or a working holiday maker.
If you send an Australian employee to work temporarily in another country, you must continue to pay super contributions for them in Australia.
If you have employees working overseas, you can apply for a certificate of coverage so you don't have to pay super in the other country as well.
However, you don't have to pay super for:
- non-resident employees who work outside Australia
- some foreign executives who hold certain visas or entry permits (phone us on 13 10 20 for information)
- employees temporarily working in Australia who are covered by a bilateral super agreement – you must keep a copy of the employee’s certificate of coverage to prove the exemption.
If you’re a non-resident employer, you don't have to pay super for resident employees for work they do outside Australia.
Self-employed
If you're self-employed as a sole trader or in a partnership, you don't have to pay super guarantee for yourself.
Armed forces reservists
You don't have to pay super guarantee for members of the army, naval or air force reserve for work carried out in that role.
High income earners who opt out of super
You don't have to pay super guarantee for high-income earners working for multiple employers if your employee has successfully applied to opt out.
We will send you a copy of the Super guarantee employer shortfall exemption certificate which will specify the period for which you do not have to pay super guarantee for a financial year.