Super Guarantee Rate Increase: What Employers Need to Know in 2025
Managing super due dates is one of the most critical yet challenging responsibilities for Australian employers. Missing a payment due date for super contributions can lead to financial penalties, strained cash flow, and administrative headaches. This article provides actionable strategies to help businesses streamline compliance, avoid common pitfalls, and prepare for upcoming regulatory changes, so you can pay super with confidence and peace of mind.
Understanding Superannuation Due Dates
Australian employers must pay super guarantee contributions for all eligible employees. These super payments are required by law and must be paid to a complying super fund at least quarterly. The payment due dates are set by the Australian Taxation Office (ATO) and are 28 days after the end of each quarter. For example, super guarantee payments for the period 1 July to 30 September must reach the employee’s super fund by 28 October. Likewise, contributions for 1 October to 31 December are due by 28 January, and so on.
If a due date falls on a weekend or public holiday, the super payment is considered paid on time if it reaches the super fund or clearing house by the next business day. Employers who pay super contributions monthly or align super payments with their payroll cycles may find it easier to stay on top of their super obligations. However, regardless of your payment schedule, it’s important to ensure payments are made before the super payment due dates to avoid late payments and potential penalties.
The ATO has increased its focus on super data reporting, especially as the superannuation guarantee rate is set to rise to 12% by July 2025. Businesses need to check their payroll systems to ensure they can handle changes to super guarantee contributions and that all super fund details for employees are up to date.
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Consequences of Missing Super Due Dates
Missing a super payment due date triggers the Superannuation Guarantee Charge (SGC), which is made up of several components. The SGC includes the unpaid super, calculated on the employee’s salary and wages, not just ordinary time earnings. It also includes an administration fee of $20 per employee per quarter and interest that accrues at 10% per year on the unpaid super amount.
For example, if you have multiple super funds to pay for your team and miss a quarterly due date, you could face administrative fees and interest charges for each employee’s super contribution that is paid late. The SGC is not tax deductible, adding to the cost of late super payments. The ATO uses real-time super data from Single Touch Payroll and super funds to monitor compliance, making it easier to identify unpaid super or late super payments.
If the due date falls on a weekend or public holiday, the payment due date is extended to the next business day. However, payments must reach the employee’s super fund by this date to be considered paid on time. If super contribution payments are paid late, they are not tax deductible, and the business may be subject to further scrutiny or audits by the Australian Taxation Office.
Best Practices for Meeting Super Payment Due Dates
Staying on top of quarterly super due dates is essential for every business. Here are some practical steps to help you pay super guarantee contributions on time and meet your contractual obligations to eligible employees.
Using Payroll Software and Clearing Houses
Using payroll software that can report super electronically and automate super guarantee payments is a smart move. These systems can calculate SG contributions, generate payment schedules, and work with a clearing house to distribute super payments to multiple super funds in one transaction. The ATO’s Small Business Superannuation Clearing House is a popular choice for small businesses, helping to ensure payments are made on time and to the correct super fund.
Setting Up Reminders and Managing Cash Flow
Mark all quarterly super payment due dates on your calendar and set reminders a week before each due date. This is especially important if the due date falls on a weekend or public holiday, as you’ll need to ensure payments are made early enough to reach the super fund by the next business day. Keeping superannuation contributions in a separate account can help you manage cash flow and avoid late payments.
Keeping Employee Super Fund Details Up to Date
Make sure you have up-to-date super fund details for all employees. Since November 2021, if a new employee does not provide a super fund choice, you must request a stapled super fund from the ATO. Providing eligible employees with a superannuation standard choice form and keeping records of their choices helps prevent issues with super contribution payments being rejected or delayed.
Preparing for Payday Super and Future Changes
From 1 July 2026, the government will require businesses to pay super guarantee contributions at the same time as wages, rather than quarterly. This change, known as payday super, means you will need to pay super contributions more frequently, such as with each pay cycle or monthly super payment, rather than making quarterly super payments.
What Payday Super Means for Your Business
To get ready for payday super:
Upgrade your payroll software to handle more frequent super payments and to report super electronically.
Review your cash flow to ensure you can meet more regular super payment due dates.
Stay informed about ATO updates regarding superannuation guarantee contributions and any changes to payment due dates.
Paying super contributions more frequently can help employees grow their retirement savings sooner and reduce the risk of late payments or unpaid super.
How Professional Advisors Can Help with Super Obligations
Managing super obligations, including keeping track of super payment due dates and ensuring payments reach the correct super fund, can be overwhelming. Working with a professional accountant or tax agent can help you:
Support with Super Compliance and Reporting
Develop a process to pay super guarantee contributions on time and avoid the superannuation guarantee charge.
Navigate due date considerations, such as when the due date falls on a weekend or public holiday.
Ensure all super fund details are correct for each employee’s super fund and that all superannuation contributions are paid on time.
Prepare for changes like payday super and increased super guarantee rates.
Professional advice can also help you respond to ATO queries about late super payments, unpaid super, or guarantee charge SGC assessments, and can guide you on how to report super electronically for compliance.
Conclusion
Staying on top of super payment due dates is essential for every Australian business. By automating payroll, setting reminders, verifying super fund details, and preparing for upcoming changes like payday super, you can meet your super obligations and avoid penalties. If you need help managing super guarantee payments or want to ensure your processes are up to date, our team is here to help.
Contact ACT Tax Group for friendly, expert advice on paying super contributions, meeting every payment due date, and simplifying your superannuation guarantee responsibilities. Let’s make superannuation contributions stress-free, so you can focus on growing your business and supporting your team’s retirement savings.