Superannuation in 2025-26: The SME’s Ultimate Guide to the 12% Rate, Deadlines, and ‘Payday Super’

The 2025-26 financial year is a game-changer for superannuation in Australia, and for small and medium-sized business owners, staying ahead is not just good practice—it's essential for survival. The Superannuation Guarantee (SG) rate has officially hit its peak at 12%, but that's just the beginning.1 A massive shift in how and when you pay super is just around the corner.

Forget the dry, jargon-filled guides. This is your straightforward, no-nonsense blog post for mastering your super obligations. We’ll cover the new 12% rate, the common traps that lead to hefty ATO penalties, and how to prepare your cash flow for the biggest shake-up in years: Payday Super.

The New Standard: Getting the 12% Super Rate Right

From 1 July 2025, the mandatory Superannuation Guarantee (SG) rate increases from 11.5% to 12%.1 This is the final scheduled increase, bringing a new level of stability for your long-term planning.

But here’s the crucial detail: the rate you pay is determined by the date you pay your employee, not when they did the work.

Example: Your monthly pay run covers work from 22 June to 19 July 2025. If you process that payment on or after 1 July 2025, you must apply the new 12% rate to the entire pay period. Get this wrong, and you’re already facing a super shortfall.

Who You Need to Pay: It's More Than Just Full-Timers

Correctly identifying every eligible worker is ground zero for compliance. A mistake here can be costly.

• Full-time, Part-time, and Casual Employees: You must pay super for all of them. Since the $450 monthly eligibility threshold was scrapped, you now pay super on every dollar of their Ordinary Time Earnings (OTE).

• Employees Under 18: You only need to pay super if they work more than 30 hours in a week.

• The Contractor Trap: This is where many businesses get caught. You may be required to pay super for an independent contractor if their contract is primarily for their personal labour and skills.7 It doesn’t matter if they have an ABN or send you an invoice. If you’re paying them for their time and they can't delegate the work, you likely owe them super. When in doubt, use the ATO’s(https://www.ato.gov.au/calculators-and-tools/super-guarantee-eligibility) to be sure.

Remember to keep all records of super payments and eligibility checks for at least five years.

Don't Miss the Boat: Super Payment Deadlines for 2025-26

Paying super on time is non-negotiable. You must make payments at least quarterly, and the deadlines are strict.

Here are the Superannuation Guarantee (SG) payment deadlines for the 2025-2026 financial year:

• Q1: For the period of 1 July – 30 September 2025, the SG payment is due on 28 October 2025.

• Q2: For the period of 1 October – 31 December 2025, the SG payment is due on 28 January 2026.

• Q3: For the period of 1 January – 31 March 2026, the SG payment is due on 28 April 2026.

• Q4: For the period of 1 April – 30 June 2026, the SG payment is due on 28 July 2026.
  

CRITICAL: A payment is only considered 'paid' when it is received by the employee's super fund, not when you send it from your bank or clearing house. Commercial clearing houses can take up to 14 days to process payments .

Best Practice: To be safe, process your super payments at least 10 business days before the official due date.

The ATO’s Hammer: The Superannuation Guarantee Charge (SGC)

If you miss a payment, even by one day, you don't just owe the super. You get hit with the Superannuation Guarantee Charge (SGC), a painful penalty package designed to make you never miss a deadline again.

Crucially, the SGC is not tax-deductible, unlike your on-time super payments.

The SGC is made up of three parts:

1. The SG Shortfall: The ATO makes you recalculate the missed super on the employee's total 'Salary and Wages,' which includes overtime. This base is broader than the 'Ordinary Time Earnings' used for on-time payments, so the amount you owe is instantly inflated.

2. Nominal Interest: A 10% annual interest charge is applied to the shortfall. This interest starts accruing from the first day of the quarter, not the due date, meaning you’re already behind by the time the deadline passes.

3. Administration Fee: A flat fee of $20 per employee, per quarter.

A simple missed payment can quickly snowball into a much larger, non-deductible debt.

The Future is Coming: Prepare for 'Payday Super' Now

The biggest change to superannuation in a generation is scheduled to start on 1 July 2026.'Payday Super' will require you to pay employees' super contributions at the same time as you pay their wages.

This will have a massive impact on cash flow. The current quarterly system allows businesses to use accrued super as working capital for up to four months. Payday Super eliminates this float completely.

If your business relies on this cash flow buffer, you need to start planning now. Model the financial impact, review your budgets, and ensure you have the funds to cover both wages and super every single pay run.

As part of this change, the ATO’s free Small Business Superannuation Clearing House (SBSCH) will be decommissioned from 1 July 2026. If you use this service, you will need to transition to a commercial payroll or clearing house solution.

A Quick Look at Contribution Caps

While it's the employee's job to track their contribution caps, being aware of them helps you be a better employer, especially for your high-income earners.

• Before-Tax (Concessional) Cap: $30,000 per year . This includes your 12% SG payments, plus any salary sacrifice amounts.

• After-Tax (Non-Concessional) Cap: $120,000 per year .

Heads Up for High Earners: The maximum earnings base on which you must pay super is now $62,500 per quarter . An employee earning this amount will receive exactly $30,000 in SG from you over a year ($7,500 x 4). This means their entire concessional cap is used up by your mandatory payments alone. If they salary sacrifice even a small amount, they will breach their cap and face extra tax.15 It's wise to flag this with any highly-paid staff.

Your SME Super Checklist for 2025-26

Feeling overwhelmed? Don't be. Here’s your simple, actionable checklist.

1. Update Your Payroll NOW: Check that your software is set to calculate super at 12% for all payments made on or after 1 July 2025.

2. Review Your Team: Double-check who is eligible for super, paying close attention to any independent contractors. Use the ATO's tools if you're unsure.

3. Mark Your Calendar: Set reminders for the quarterly due dates and plan to pay at least 10 days early.

4. Start 'Payday Super' Planning: Begin cash flow forecasting to understand how paying super with every pay run will impact your business from 1 July 2026.

5. Find a New Clearing House: If you use the free SBSCH, start researching commercial alternatives now to ensure a smooth transition.

By taking these proactive steps, you can navigate the new super landscape with confidence, ensuring compliance and protecting your business's financial health.