Superannuation Guarantee is one of the least forgiving areas of employer compliance — miss a due date and you lose the tax deduction and pick up penalties, even if the payment is only a few days late. Here's what Perth employers need to have right.
What is the Superannuation Guarantee?
The Superannuation Guarantee (SG) is the compulsory minimum contribution employers must pay into an eligible employee's super fund, calculated on their ordinary time earnings. It exists independently of whatever super arrangement is negotiated in an employment contract — SG is a legal floor, not a negotiable extra, and it applies whether the employee is full-time, part-time, or casual.
What is the current Superannuation Guarantee rate?
The SG rate has risen in stages under a legislated schedule and reached 12% from 1 July 2025, the final step in that schedule. Because the rate has moved most years recently, it's worth confirming the current percentage at the start of each financial year rather than assuming last year's rate still applies — payroll software doesn't always update automatically without a version check.
Which employees are entitled to super guarantee?
Since the removal of the $450 monthly earnings threshold, most employees aged 18 and over are entitled to SG regardless of how little they earn in a pay period. Employees under 18 need to work more than 30 hours in a week to qualify. Importantly, SG isn't limited to employees on paper — contractors who are paid wholly or principally for their personal labour are often legally employees for super purposes, even if they invoice through an ABN, and are entitled to SG on top of the contract price.
What about company directors?
Directors who receive wages or director's fees are generally entitled to SG on those payments in the same way as any other employee, which is easy to overlook in small owner-operated companies where the director doesn't think of themselves as "staff."
What happens if an employer pays super late?
If a contribution isn't received by the employee's fund by the quarterly due date, the employer loses the ability to claim a tax deduction for that contribution and must instead lodge a Superannuation Guarantee Charge (SGC) statement with the ATO. The SGC is calculated on total salary and wages rather than ordinary time earnings, which usually makes it larger than the SG shortfall itself, and it comes with 10% annual interest plus a per-employee administration fee. This is one of the most expensive compliance mistakes a small employer can make for what's often just a payment processed a few days too late.
Is super guarantee due to a contractor's fund or paid as extra wages?
Where a contractor is entitled to SG, the contribution must go into their nominated super fund in addition to the agreed contract price, unless the contract explicitly states the rate is inclusive of super. Businesses that engage contractors regularly should get written agreement on whether rates are super-inclusive to avoid disputes and unbudgeted SG liabilities later.
How can employers stay compliant?
Paying SG a few days ahead of the quarterly due date — rather than on the deadline itself — protects against processing delays through clearing houses. Reviewing eligible employees and contractors each financial year, alongside a check of the current SG rate, catches most compliance gaps before they become an SGC liability.
The Metier Group helps Perth employers manage payroll and superannuation compliance as part of our superannuation services. Contact us if you're unsure whether your SG obligations are being met correctly.