From 1 July 2025, the superannuation guarantee (SG) rate will rise to 12%. This change completes a series of planned increases set out in law. Employers must now pay their employees’ SG contributions within 28 days after each quarter ends. These quarterly deadlines are 28 October, 28 January, 28 April, and 28 July. If a due date falls on a public holiday, employers receive an extra day to make the payment.

For compliance, the payment must be received by the employee’s super fund on or before the deadline. This rule has one main exception. Employers using the ATO’s Small Business Superannuation Clearing House (SBSCH) have a different requirement. The Australian Taxation Office (ATO) has dedicated significant resources to enforcing these rules in recent years. This increased scrutiny affects both employees and employers.

Information for Employers

An employer can only claim a tax deduction for SG contributions if the payment reaches the employee’s super fund by the quarterly due date. The exception applies for users of the ATO SBSCH. For these employers, a contribution is deemed on time if it is received by the clearing house by the deadline.

Employers using a commercial clearing house must plan for processing times. These services collect and distribute employee contributions. They are often linked to payroll software or provided by super platforms. Some clearing houses can take up to 14 days to process payments. Employers should therefore action payments well before the quarterly deadline to avoid any issues.

Missing a deadline, even by a single day, triggers the Superannuation Guarantee Charge (SGC). This charge results in the loss of the tax deduction and imposes other penalties. 

Employers can choose to pay SG more frequently than quarterly. This practice will become mandatory if the proposed ‘payday super’ reforms become law. This change is planned to start on 1 July 2026. It would require SG to be paid at the same time as salary and wages. Please note that the ATO SBSCH will close when this reform begins. Employers using this service should start planning a move to a commercial clearing house.

Information for Employees

Employees should make a habit of checking their super fund statements regularly. It is important to match the received contributions to the amounts listed on your pay slips.

What should you do if your SG contributions are late or missing? The first step is to raise the issue directly with your employer. If this discussion does not lead to a satisfactory outcome, you can report the matter to the ATO for further investigation.

If you have any question related to superannuation, please feel free to contact Bates Cosgrave.