As a franchise owner, paying your eligible workers’ super is not just a legal obligation but a crucial step in securing their financial future. I always tell employers to make sure they’re paying super in full, on time, and to the right fund. Simple, right? There are a few steps involved, and our guide below breaks it all down.
Pay super for all eligible workers
Ask yourself:
- Is your worker an employee or an independent contractor?
- If they are an independent contractor have you assessed whether super guarantee (SG) contributions are required?
These answers determine eligibility for super.
Nearly all employees are eligible for SG, but additional eligibility rules apply for independent contractors, domestic workers and workers under 18 years of age.
I recommend using our decision tool as a guide: ato.gov.au/SGEligibility.
Pay to the right fund
Where you pay super contributions matters. Eligible workers can choose their own super fund, or they may ask you to nominate one for them.
To make sure you have the right fund:
- Provide your workers with a standard choice form to nominate their preferred choice of fund.
- If they don’t choose a super fund, you need to request their ‘stapled super fund’ details from the ATO and pay to that fund.
- Choose your default super fund if your worker doesn’t have a stapled fund and hasn’t chosen their own.
Remember to always provide the fund with your employees’ tax file number (TFN) so they can make sure the payments end up in the right place.
Pay in full
The SG rate increased from 11.5% to 12% on 1 July 2025. The 12% rate will need to be applied to the ordinary time earnings (OTE) amount paid to eligible workers on and after 1 July. This is even if some or all of the pay period it relates to is before 1 July.
To manually work out how much super to pay, multiply each employee’s OTE paid in the quarter (before tax), by the SG rate.
OTE is the amount you pay employees for their ordinary hours of work – this includes things like commissions and shift loadings but doesn’t include overtime. It’s important to understand which amounts are OTE so you can be confident you’re paying the right amount.
Be aware that under an award or agreement, you may also need to pay super on amounts that aren’t OTE.
More information is available here: ato.gov.au/payingsupercontributions. Or you can also check on ato.gov.au/calc_howtopaysuper where you will find a handy calculator.
Pay on time
Remember the due dates! SG must be paid at least quarterly, but can be paid more often to help manage your cashflow. Find out more at ato.gov.au/cashflowcoachingkit.
The quarterly SG due dates are:
- 28 July
- 28 October
- 28 January
- 28 April
If you’re using a commercial clearing house, allow enough time for payments to reach employees’ super funds by the quarterly due date. Payments are only considered ‘paid’ when they reach your employees’ super fund. You should check directly with your clearing house for their processing times.
I recommend setting up calendar reminders for these due dates, so you’re notified when the due date is coming up, and don’t forget to allow processing times for the weekend.
For more information, visit ato.gov.au/payontime.
Missed a due date? Here’s how to get back on track
We understand that sometimes things happen. If you didn’t pay your employees’ super in full, on time and to the right fund, you’ll need to lodge a super guarantee charge (SGC) statement and pay the SGC to us to avoid further penalties. This payment is more than the super you would have otherwise paid to your employees’ super funds, so it is better to get it right if you can.
SGC is paid on all salary and wages, not just OTE, so that will include things like overtime. Unlike super payments made on time, SGC is not tax deductible. You’ll also pay interest on any SGC owed, as well as an administrative fee.
Make sure you calculate, lodge, and pay the SGC by the quarterly due date to avoid further penalties:
- 28 August
- 28 November
- 28 February
- 28 May
Remember to take your time when completing the SGC statement, guidance on how to complete the form is available at ato.gov.au/SGCstatement.
This information helps the ATO allocate your payment to the correct employee’s super fund. We can’t allocate these payments if we don’t have everything we need, like your employees TFN’s.
For more information, visit ato.gov.au/lateSG.
The importance of record keeping
As an employer, it’s your responsibility to keep accurate and up-to-date records. This helps you keep track of super payments for workers and show compliance with super obligations.
Your records should cover:
- The amount of super paid for each eligible worker
- The dates you paid them
- Any calculated SG shortfall for each quarter
- Any lodged SGC statements, and
- Any voluntary contributions you’ve
It’s important to keep your eligible workers’ information up to date. This includes their name, TFN, and chosen super fund details. If an eligible worker changes super funds, have them complete a new choice of fund form.
If you’re behind or feel like you could be falling behind in meeting your super obligations, get in touch with the ATO. The earlier you contact us, the sooner we can work with you to get you back on track.
For more information, visit ato.gov.au/superquickcheck.
Know your responsibilities as an employer
On top of meeting your super obligations, you have a range of other employer obligations. This includes Single Touch Payroll reporting, pay as you go withholding, and fringe benefits tax.
For more information, including a handy fact sheet on meeting your employer obligations, visit ato.gov.au/employers.
What’s new
You may have heard that the government has announced Payday Super. From the start date, employers will be required to pay their eligible workers’ super at the same time as their salary and wages.
This measure is not yet law, so keep up to date at ato.gov.au/paydaysuper.
Peta Lonergan is the Assistant Commissioner for Superannuation and Employer Obligations at the ATO. She is passionate about supporting and educating employers to help them comply with their tax and super obligations.