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From 1 July 2025, the superannuation guarantee (SG) rate increased to 12%. This is the final step in a series of planned rises that have been legislated for several years. While the new rate has received attention, the more pressing issue for both employers and employees is how contributions are handled and when they must be paid.

Quarterly Deadlines

Employers are currently required to pay SG contributions within 28 days after the end of each quarter. The due dates are:

  • 28 October – July to September quarter
  • 28 January – October to December quarter
  • 28 April – January to March quarter
  • 28 July – April to June quarter

If the deadline falls on a public holiday, an extra day is granted. Importantly, contributions must be in the employee’s superannuation fund by these dates. The only exception is where the ATO Small Business Superannuation Clearing House (SBSCH) is used. In that case, a payment is considered made once the SBSCH receives it.

Employer Considerations

Claiming Deductions

To claim a tax deduction, contributions must be in the super fund (or SBSCH) by the due date. Employers who use commercial clearing houses need to plan carefully. These intermediaries process contributions and forward them to super funds, but turnaround times can be lengthy—sometimes up to two weeks. Employers should therefore allow plenty of lead time before the quarterly deadline.

Late Payments and Penalties

Missing a deadline, even by a single day, triggers the Superannuation Guarantee Charge (SGC). This results in:

  • Loss of the tax deduction
  • Additional penalties
  • Interest charges

The ATO requires employers to lodge an SGC statement if a deadline is missed, which increases compliance costs.

Looking Ahead: Payday Super

Employers should also prepare for potential changes. The government has proposed “payday superannuation” reforms starting 1 July 2026. Under this system, SG would be paid at the same time as wages, not quarterly. If introduced, the SBSCH will close, and employers using it will need to transition to a commercial clearing house. Businesses may wish to start reviewing their options early.

Employee Considerations

Employees also have responsibilities. It is recommended that workers:

  • Regularly check superannuation fund statements
  • Match contributions with payslips
  • Raise issues directly with employers if contributions are missing or late

If concerns are not resolved, employees can escalate matters to the ATO.

The increase to 12% completes a long-running policy change, but the real challenge lies in timely and accurate contributions. Employers must ensure processes are in place to meet deadlines, especially if using a clearing house. Employees should remain proactive in monitoring their super accounts. With stronger ATO enforcement and the possibility of payday super on the horizon, both sides have good reason to stay alert.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), membership certification of the Australian Society of Certified Practising Accountants (CPA), Registered Australia Tax Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Yvonne Shao @ Pitt Martin Tax