Super Guarantee 2025

Oct 31, 2025 | Superannuation, Superannuation Guarantee

Understanding the Superannuation Guarantee

Critical Due Dates and Compliance Considerations for 2025

With the superannuation guarantee rate reaching its final legislated increase to 12% on 1 July 2025, both employers and employees in Newcastle and across Australia need to be acutely aware of their obligations and entitlements. After 42 years of supporting Hunter Valley businesses, we’ve seen firsthand how missing superannuation deadlines—even by a single day—can create significant headaches and financial penalties.

Let me walk you through what you need to know about superannuation guarantee compliance in 2025 and beyond.

Understanding the 2025 Superannuation Guarantee Rate

As of 1 July 2025, the superannuation guarantee rate sits at 12% of an employee’s ordinary time earnings. This marks the completion of the gradual increase schedule that began in 2021, providing Australian workers with enhanced retirement savings whilst placing additional responsibilities on employers.

Critical Quarterly Due Dates for Employers

Superannuation guarantee contributions must be paid by 28 days after the end of each quarter. Here are your key dates for the 2025-26 financial year:

  • 28 October 2025 (for July-September quarter)
  • 28 January 2026 (for October-December quarter)
  • 28 April 2026 (for January-March quarter)
  • 28 July 2026 (for April-June quarter)

When these dates fall on a weekend or public holiday, you get an extra day’s grace. However, here’s the critical point: the contribution must be in your employee’s superannuation fund account by this date—not just sent or processed.

Employer Obligations: Getting It Right to Claim Your Tax Deduction

The Tax Deduction Rule

To claim a tax deduction for superannuation guarantee contributions, the money must be in your employee’s super account on or before the quarterly due date. Miss that deadline—yes, even by 24 hours—and you’ll lose the tax deduction entirely, regardless of whether you eventually pay the contribution.

The ATO Small Business Superannuation Clearing House Exception

There’s one exception to the “in the fund” rule: if you’re using the ATO Small Business Superannuation Clearing House (SBSCH), your contribution is considered made provided the SBSCH receives it by the due date.

However, there’s an important update here: the SBSCH is scheduled to close when the proposed ‘payday superannuation’ reforms commence (likely 1 July 2026). If you currently rely on this service, now’s the time to start planning your transition to a commercial clearing house. We’re here to help TSP clients navigate this change smoothly.

Commercial Clearing Houses: Allow Extra Time

Many Newcastle businesses use commercial clearing houses, which collect and distribute employee contributions and often integrate with accounting or payroll software. Here’s what you need to know:

Turnaround times can be up to 14 days with some commercial clearing houses. This means you can’t leave your super payments until 28 October if you want them in employees’ accounts by that date. We recommend processing contributions at least two weeks before the quarterly deadline to ensure compliance.

The Consequences of Missing Superannuation Deadlines

The ATO has significantly ramped up compliance activities around superannuation guarantee obligations in recent years, and the penalties are severe:

Superannuation Guarantee Charge (SGC)

Missing a deadline – even by one day – triggers a Superannuation Guarantee Charge requirement, which includes:

  1. Loss of tax deduction for the late contribution
  2. Interest charges on the unpaid amount
  3. Administration fee of $20 per employee per quarter
  4. Potential penalties of up to 200% of the SGC in serious cases

The SGC must be calculated, reported to the ATO, and paid within one month of the quarter end. Unlike regular SG contributions, the SGC is not tax deductible, meaning you’re paying significantly more for being late.

Looking Ahead: Payday Superannuation Reforms

Proposed legislation (not yet law) would require employers to pay superannuation at the same frequency as salary or wages, commencing from 1 July 2026. This ‘payday superannuation’ approach would fundamentally change how many businesses manage their super obligations.

Under these reforms:

  • Weekly pay cycles would require weekly super payments
  • Fortnightly pay cycles would require fortnightly super payments
  • Monthly pay cycles would require monthly super payments

Whilst this adds administrative complexity, it provides employees with more regular contributions and reduces the risk of accumulating large super debts. It’s something Newcastle employers should start preparing for now, particularly if you’re still using the SBSCH.

Employee Rights and Responsibilities

Check Your Superannuation Statements Regularly

We encourage all employees to take an active role in monitoring their superannuation entitlements. Here’s what you should do:

  1. Regularly review your super fund statements
  2. Reconcile employer contributions against your pay slips
  3. Calculate that you’re receiving at least 12% of your ordinary time earnings
  4. Check timing to ensure contributions arrive within 28 days of quarter end

What to Do If Contributions Are Missing or Late

If you notice discrepancies:

Step 1: Discuss the issue with your employer first. Often, legitimate explanations exist, or administrative errors can be quickly corrected.

Step 2: If your employer doesn’t resolve the issue satisfactorily, you can report the matter to the ATO. The ATO takes superannuation guarantee non-compliance seriously and has dedicated resources to investigate and enforce employers’ obligations.

Remember, you have a right to receive your superannuation entitlements on time—it’s not a favour from your employer; it’s your legal entitlement and part of your employment remuneration.

Best Practice Recommendations from TSP

After many years of supporting Newcastle and Hunter Valley businesses with their accounting and compliance obligations, here are our top tips:

For Employers:

  1. Set up calendar reminders two weeks before each quarterly deadline
  2. Consider more frequent contributions (monthly or even with each pay run) to spread the administrative load and reduce compliance risk
  3. If using a clearing house, understand its turnaround times and plan accordingly
  4. Implement reconciliation processes to ensure all employees are captured and contributions are calculated correctly
  5. Prepare now for the transition to payday superannuation
  6. Keep detailed records of contribution dates and amounts

For Employees:

  1. Register for online access to your super fund
  2. Check your statements at least quarterly
  3. Keep your pay slips and compare them to super contributions
  4. Know your rights and don’t hesitate to raise concerns
  5. Consider consolidating super accounts to make monitoring easier

How TSP Accountants Can Help

Superannuation compliance is increasingly complex, with the ATO dedicating significant resources to enforcement. Whether you’re a Newcastle small business owner juggling multiple responsibilities or an employer with a larger workforce, getting your superannuation guarantee obligations right is critical.

At TSP Accountants & Business Advisors, we can assist with:

  • Setting up compliant superannuation payment systems
  • Calculating superannuation guarantee obligations accurately
  • Transitioning from the SBSCH to commercial clearing houses
  • Preparing for payday superannuation reforms
  • Reconciling past contributions and identifying any shortfalls
  • Navigating ATO audits or compliance reviews
  • General payroll and bookkeeping services

We’ve been supporting Hunter Valley businesses for over 42 years, and we understand the practical realities of running a business whilst staying compliant with ever-changing regulations.

Don’t Let Superannuation Compliance Catch You Out

The 12% superannuation guarantee rate is now set, but that doesn’t mean your super obligations are on autopilot. With increased ATO scrutiny, upcoming payday super reforms, and the closure of the SBSCH, now is the perfect time to review your systems and ensure you’re meeting your obligations as an employer—or receiving your entitlements as an employee.

Missing a superannuation deadline can be expensive. The loss of tax deductions, interest charges, and potential penalties add up quickly. Why take the risk when expert help is just a phone call away?

Need assistance with superannuation guarantee compliance? Call TSP Accountants on 4926 4155 or email ad***@****************om.au. Let’s ensure your super obligations are sorted so you can focus on what you do best—running your business or enjoying your career without compliance worries.

Frequently Asked Questions About Superannuation Guarantee

What happens if I miss the superannuation guarantee deadline by just one day?

Unfortunately, missing the deadline by even a single day triggers the Superannuation Guarantee Charge (SGC) requirements. This means you’ll lose the tax deduction for that contribution, face interest charges, and must pay an administration fee of $20 per employee per quarter. The SGC itself is not tax deductible, making late payments significantly more expensive than paying on time. The ATO has zero tolerance for late payments, regardless of the reason.

Can I pay superannuation more frequently than quarterly?

Absolutely! In fact, paying more frequently (monthly, fortnightly, or even with each pay run) can reduce your compliance risk and spread the administrative workload. Many businesses find this approach easier to manage, and you’ll need to adopt this practice anyway when the proposed payday superannuation reforms take effect from 1 July 2026. The quarterly dates represent the maximum time frame—you can certainly pay more often.

How do I know which superannuation fund to pay my employee’s contributions into?

Employees have the right to choose their own superannuation fund through a “Standard Choice Form.” When a new employee starts, you must provide them with this choice within 28 days. If they don’t nominate a fund, you’ll need to use your workplace’s default fund (if you have one) or a compliant MySuper product. Never assume you know which fund to use—always confirm with your employee and keep records of their choice.

What is the ATO Small Business Superannuation Clearing House, and should I be using it?

The ATO SBSCH is a free service for small businesses (with 19 or fewer employees or annual aggregated turnover of less than $10 million) to help manage superannuation payments. However, it’s important to know that the SBSCH is scheduled to close when payday superannuation reforms commence (likely 1 July 2026). If you currently use the SBSCH, you should start planning now to transition to a commercial clearing house. At TSP, we can help you select and set up an appropriate alternative.

I’m an employee and my employer hasn’t paid my super for two quarters. What should I do?

First, approach your employer directly to discuss the situation—sometimes there are legitimate explanations or administrative errors. If this doesn’t resolve the issue, you can make a complaint to the ATO through their online services. The ATO treats superannuation guarantee non-compliance seriously and will investigate. You don’t need to wait indefinitely—unpaid superannuation affects your retirement savings, and you have every right to receive what you’re legally entitled to.

Do I have to pay superannuation guarantee on bonuses and commissions?

: Yes, in most cases. Superannuation guarantee is calculated on “ordinary time earnings” (OTE), which generally includes regular wages or salary, commissions, bonuses (in most circumstances), shift loadings, allowances, and some overtime. However, the definition of OTE can be complex, and not all payments are included. If you’re unsure whether particular payments attract superannuation guarantee, it’s worth seeking professional advice to ensure you’re meeting your obligations correctly.

What’s changing with the payday superannuation reforms?

The proposed payday superannuation reforms (expected to commence 1 July 2026, though not yet legislated) would require employers to pay superannuation at the same frequency as they pay wages or salaries. If you pay your employees weekly, you’d need to pay super weekly. This is designed to reduce the risk of super debt accumulation and ensure employees receive their entitlements more regularly. Whilst this adds administrative complexity, many accounting software packages will be updated to handle this automatically. The key is to start preparing your systems now rather than waiting until the last minute.

Can I backdate superannuation payments and still claim the tax deduction?

No. The tax deduction for superannuation guarantee contributions is only available if the contribution reaches the employee’s super fund by the quarterly due date (or is received by the SBSCH by that date). If you miss the deadline and later make the payment, you cannot claim a tax deduction for it—even though you still legally owe the money. This is one reason why late superannuation is so expensive: you lose the tax benefit entirely, making the cost to your business much higher.

How do commercial clearing houses work, and why do I need to allow extra time when using them?

Commercial clearing houses act as intermediaries that collect superannuation contributions from employers and distribute them to various employees’ super funds. They’re often integrated with accounting or payroll software, which makes managing multiple employees with different funds much simpler. However, clearing houses need processing time—sometimes up to 14 days—to verify details and transfer funds to the various super funds. This means if you want money in your employees’ funds by 28 October, you might need to submit to the clearing house by mid-October. Always check your clearing house’s processing times and build in a buffer.

What records should I keep regarding superannuation guarantee contributions?

You should maintain comprehensive records including: employee choice of fund forms, contribution calculations showing the 12% of OTE, proof of payment to the super fund or clearing house (including dates), employee pay slips showing super accrual, and quarterly reconciliations. Keep these records for at least five years (though seven years is safer for broader tax purposes). Good record-keeping protects you in case of ATO audit and helps resolve any employee queries quickly.

This article is intended as general information only and should not be relied upon as specific tax or superannuation advice. For personalised guidance on your superannuation obligations or entitlements, please contact TSP Accountants & Business Advisors on 4926 4155 or email ad***@****************om.au.

Deidre Molloy | BCom, CA
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