Super is 12% now, and getting it wrong is one of the most expensive mistakes an employer can make — because the penalty (the SGC) is worked out on a bigger base than the super you owe, it carries interest, and it is not tax-deductible. Here is the rate, the base, the deadlines, and the trap that makes late super so costly in construction.
The rate and the base
The Super Guarantee (SG) rate is 12% from 1 July 2025 — the final legislated step-up (it was 11.5% in 2024–25) and it stays at 12%. You pay it on each eligible worker's ordinary time earnings (OTE), up to the maximum contribution base of about $62,500 per quarter (2025–26) — so the most SG you must pay for one worker is about $7,500 a quarter. If you pay someone on or after 1 July 2025, the whole payment is at 12%, even for work done earlier.
What counts as OTE (the construction detail)
OTE is what a worker earns for their ordinary hours — and the line between OTE and non-OTE is exactly where construction payroll goes wrong:
- In (SG payable): the base rate for ordinary hours; duty-related allowances tied to ordinary hours (site, leading hand, first aid, industry allowances); ordinary-hours bonuses and commissions; paid annual and personal leave.
- Out (no SG): overtime (time-and-a-half, double time, weekend overtime outside the ordinary pattern); genuine expense reimbursements (travel, tools, per-km motor allowance); and certain termination payments (redundancy, unused leave, pay in lieu of notice).
Overtime not being OTE matters enormously — see the SGC trap below.
Deadlines — and Payday Super from 1 July 2026
Until 30 June 2026, SG runs on a quarterly cycle, and "paid on time" means the money has reached the fund (or clearing house) by the due date — not just been initiated:
| Quarter | Due |
|---|---|
| Jul–Sep | 28 October |
| Oct–Dec | 28 January |
| Jan–Mar | 28 April |
| Apr–Jun | 28 July |
From 1 July 2026, Payday Super begins: the quarterly deadlines disappear and you must pay SG at the same time as wages — the contribution has to reach the fund within about 7 business days of each pay event. Build for it now; the Small Business Super Clearing House (SBSCH) is being phased out by 1 July 2026, so if you rely on it, line up a commercial clearing house or payroll-integrated solution.
The SGC trap — why late super is so expensive
Miss the deadline by even a day and you cannot just pay the super late — you must lodge an SG Charge (SGC) statement and pay the SGC, which is deliberately punitive:
- The shortfall is recalculated on total salary and wages — NOT just OTE. This is the killer in construction: your shortfall now includes the overtime that SG never applied to.
- Nominal interest at 10% per annum, from the first day of the quarter.
- An administration fee per employee per quarter.
- A Part 7 penalty of up to 200% of the SGC for failing to lodge, and up to 75% for a false or misleading statement, plus general interest charge compounding daily.
- None of the SGC is tax-deductible — whereas on-time SG is. So you pay more, on a bigger base, with interest, and lose the deduction.
The ATO sees it coming: STP Phase 2 reports each pay event (gross, OTE, super liability) in real time, and SuperStream shows what actually lands in funds — so the gap between what you should pay and what you did pay is visible almost immediately.
Who is eligible
- The old $450-a-month earnings threshold was removed on 1 July 2022 — there is no minimum earnings threshold, so assess by age and hours, not pay.
- 18 or over: SG on all eligible pay, regardless of hours or how little they earn.
- Under 18: SG only if they work more than 30 hours in a week (actual hours that week, not averaged) — and there is no construction carve-out.
- And don't forget: some ABN "contractors" are employees for SG — see Super for Contractors & PSI.
Common mistakes
- Paying SG on OTE but forgetting the SGC shortfall is on salary+wages (overtime included).
- Treating super as "initiated by the due date" rather than "received by the fund".
- Missing the under-18 >30-hour rule, or assuming a $450 floor still exists.
- Not preparing payroll for Payday Super and the SBSCH closure.
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