Superannuation Rate 2026: Still 12% — Check Your Employer Is Paying Correctly
The super guarantee rate remains at 12% for 2025-26 and 2026-27. Learn how to check your employer is paying, what counts as OTE, super on bonuses, and ATO reporting options.
The SG rate is 12% — and stays at 12% for 2026-27
The Superannuation Guarantee (SG) rate reached its legislated target of 12% on 1 July 2025. This rate applies for the 2025-26 financial year and will remain at 12% for 2026-27 and beyond unless Parliament legislates a change. The journey to 12% has been a long one: the SG started at 3% in 1992-93, reached 9% by 2002-03, was frozen at 9.5% for seven years from 2014-15 to 2020-21, and then increased by 0.5% each year from 2021-22 until reaching 12% in 2025-26. For an employee earning $70,000 per year, 12% means $8,400 in annual employer super contributions. For someone on $100,000, it is $12,000. These contributions compound significantly over a career — an extra 2.5% (the increase from 9.5% to 12%) on a $70,000 salary over a 30-year career, with investment returns, can add over $150,000 to your retirement balance. There has been some political discussion about future increases to 12.5% or 15%, but no legislation has been introduced. For now, 12% is the rate and is expected to remain stable for the foreseeable future.
How to check your employer is paying your super correctly
Unpaid and underpaid super is a widespread problem. The ATO estimates that around $5 billion in super goes unpaid each year. Here is how to verify your employer is meeting their obligations. First, log into your super fund's website or app and check your contribution history. Contributions should appear within a few weeks of each quarter's due date (28 October, 28 January, 28 April, 28 July). Second, use your myGov account linked to the ATO to view all super contributions across all your funds in one place. The ATO receives data from super funds and can show you a consolidated view. Third, calculate what you should be receiving: take your ordinary time earnings for the quarter and multiply by 12%. Compare this to the actual contribution. Fourth, check the frequency — your employer must pay at least quarterly by the due dates, but many pay monthly or per pay period. If contributions are consistently late, even if eventually paid, your employer may still be in breach. Fifth, review your payslip — it should show the super contribution amount for each pay period. If your payslip does not show super, or shows a different amount than 12% of your OTE, raise it immediately.
What counts as ordinary time earnings (OTE) for super
Super is calculated on ordinary time earnings, not total salary. Understanding what counts as OTE is essential for verifying your contributions. OTE includes: your base salary or wages for ordinary hours of work, commissions and sales incentives, shift loadings that form part of ordinary hours pay, allowances that are part of your ordinary pay (such as industry or qualification allowances), paid leave (annual leave, personal leave, long service leave, public holiday pay), bonuses that relate to ordinary hours performance, and piece rates for work during ordinary hours. OTE does not include: overtime payments (the key exclusion), expense reimbursements, workers compensation payments, pay in lieu of notice on termination (debatable — ATO guidance suggests it is OTE but case law is mixed), and lump sum termination payments that are not related to ordinary hours. For casual employees, OTE includes the casual loading component — so if you are paid $30.13 per hour as a casual (including 25% loading), super is calculated on the full $30.13. If you are salary-sacrificing into super, your employer still owes SG on your pre-sacrifice salary. The sacrifice amount is in addition to the SG obligation.
Super on bonuses, overtime, and special payments
Whether super is payable on bonuses and special payments depends on their character. Performance bonuses tied to ordinary hours work are generally OTE and attract super. Annual bonuses, sales incentives, and commission payments are typically OTE. Christmas bonuses or ad hoc ex-gratia payments may or may not be OTE depending on whether they relate to the employment or are truly gratuitous. Overtime payments are generally not OTE and do not attract super under the SG legislation. However, some enterprise agreements and employment contracts include super on overtime as an above-minimum entitlement — check your specific agreement. Directors' fees are OTE if paid to an employee-director. Salary sacrifice amounts do not reduce the SG obligation — your employer must pay 12% on your pre-sacrifice salary. Allowances are OTE if they are a regular part of your ordinary pay. Tool allowances, meal allowances, or travel allowances that reimburse actual expenses are not OTE. Leave loading (17.5%) paid on annual leave is OTE. If you are unsure about a specific payment, the ATO has a detailed ruling (SGR 2009/2) that classifies different payment types. You can also request a private ruling from the ATO for your specific situation.
Deadlines for employer super payments — and what happens if they are late
Employers must pay SG contributions at least quarterly by these deadlines: Quarter 1 (July-September) by 28 October, Quarter 2 (October-December) by 28 January, Quarter 3 (January-March) by 28 April, and Quarter 4 (April-June) by 28 July. If an employer misses a deadline, even by one day, they lose the tax deduction for the contribution and must instead pay the Super Guarantee Charge (SGC) to the ATO. The SGC is more expensive than just paying the super on time. It includes the super shortfall amount calculated on total salary and wages (not just OTE — this is a penalty), a nominal interest component of 10% per annum from the start of the quarter, and an administration fee of $20 per employee per quarter. The SGC is not tax-deductible, making it a double penalty. Employers who fail to pay the SGC face further penalties including director penalties that make company directors personally liable, additional Part 7 penalties of up to 200% of the SGC amount, and criminal prosecution for deliberate non-compliance. If you notice your employer is consistently paying super late or not at all, report it to the ATO using their online form. Reports are confidential and the ATO actively pursues unpaid super.
Future super rate projections and the political landscape
With the SG rate now at its legislated target of 12%, the question is whether it will increase further. The Australian Labor Party has historically supported higher super rates and has not ruled out future increases above 12%. Some industry super funds and unions advocate for 15% as the long-term target, arguing this is needed to ensure adequate retirement incomes and reduce reliance on the Age Pension. The Coalition has historically opposed increases to the SG rate, arguing that super increases come at the expense of take-home pay and that the current rate is adequate. Some economists agree, pointing out that higher super contributions reduce disposable income during working years and may not be optimal for all workers, particularly those with mortgages or other debts. The Retirement Income Review (2020) found that the system was broadly adequate at 12% for most workers, but that lower-income workers and those with broken career patterns (particularly women) remained at risk of inadequate retirement income. For now, 12% is locked in with no imminent change. Focus on ensuring your current 12% is being paid correctly and on time. Use our Superannuation Calculator to verify your contributions.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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