The super guarantee rate is not changing on 1 July 2026. It stays at 12% — the final legislated rate under the Superannuation Guarantee (Administration) Act 1992. But something bigger is changing: Payday Super kicks in, and it rewrites how and when you pay it.
- SG rate = 12% — unchanged from 2025-26, no further increases legislated
- Payday Super starts 1 July 2026 — super must now move with every pay run, not quarterly
- Super now appears on every payslip — employees see it each pay period, not once a quarter
- Employer action required before 30 June 2026 — update payroll settings and payslip templates now
The SG Rate That Finally Stopped Moving
After five consecutive years of increases, the super guarantee rate reached 12% on 1 July 2025 and locked in. For 2026-27, it stays there. No increase, no adjustment — 12% is the permanent rate under current law.
Here's the SG rate history so you can see exactly where we've landed:
| Financial Year | SG Rate | Change |
|---|---|---|
| 2022-23 | 10.5% | +0.5% |
| 2023-24 | 11.0% | +0.5% |
| 2024-25 | 11.5% | +0.5% |
| 2025-26 | 12.0% | +0.5% |
| 2026-27 | 12.0% | No change ✓ |
Source: ATO — Super Guarantee Percentage.
The Big Change: Payday Super Launches 1 July 2026
The rate staying flat doesn't mean nothing changes. Payday Super is the most significant structural reform to super since the guarantee was introduced. From 1 July 2026, employers must remit super contributions at the same time wages are paid — the quarterly payment window disappears entirely.
Think about what that means in practice. If you pay staff fortnightly, you now lodge super fortnightly. Weekly payroll means weekly super. There's no buffer, no end-of-quarter scramble, and no forgetting.
“"Payday Super doesn't change how much super you owe — it changes when you must hand it over. The quarterly buffer is gone."
Here's what employers need to do before the 1 July deadline:
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1
Confirm your payroll software supports per-pay-run super — most major platforms (Xero, MYOB, KeyPay) already have this functionality, but you need to enable it.
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2
Update your super payment frequency setting to match your pay cycle — weekly, fortnightly, or monthly.
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3
Check your super fund accepts high-frequency contributions — some industry funds need portal settings updated to handle more frequent payments.
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4
Update your payslip template to show the employer super contribution on every single pay — employees need to see it each period.
Missing a Payday Super payment triggers ATO interest charges from day one — there's no quarterly buffer to hide behind anymore. The ATO has confirmed the new regime will use the shortfall interest charge rate, currently around 7% p.a., with no grace period for late payments.
How the 12% Rate Shows Up on Every Payslip From July
Take a straightforward example: Emma, an office manager in Brisbane, earns $5,000 gross per fortnight. Her employer's super contribution is $600 — exactly 12% of ordinary time earnings, paid on top of her gross wage and not deducted from it.
Super is an employer contribution on top of your gross wages — not a deduction from your take-home pay. Emma's $600 super doesn't reduce her $5,000 — it's an additional cost her employer bears. Many employees don't realise this until they see it itemised on their payslip.
With Payday Super, that $600 now appears as a line item on Emma's payslip every fortnight — not once a quarter as a vague historical note. That transparency matters for employees tracking their retirement savings in real time.
Here's the practical difference for payslip compliance from 1 July 2026:
- Super line item on every payslip
- Amount calculated at 12% of OTE
- Contribution lodged same day as wages
- Fund receipt reference visible
- Super absent from individual payslips
- Single quarterly lump payment
- Employees can't track accrual
- ATO non-compliant from 1 July 2026
Your Pre-30 June 2026 Employer Checklist
Honestly, most of this is a one-afternoon job if you're on modern payroll software. The businesses that get caught out are the ones who assume their software auto-updated — it usually doesn't without you enabling the new settings.
- ✅ Confirm SG rate = 12% in your payroll settings for the new financial year
- ✅ Switch contribution schedule from quarterly to per-pay-run (Payday Super)
- ✅ Verify your super fund portal accepts high-frequency contributions
- ✅ Update your payslip template to display employer super on every pay
- ✅ Process your first Payday Super contribution on or before the first payday on or after 1 July 2026
Two things to lock in before 30 June: the rate stays at 12%, and super must now move with every payslip. Use PayslipMate to generate ATO-compliant payslips that reflect both — with the employer super contribution clearly itemised on every pay run, exactly as the new rules require.
Frequently Asked Questions
Is the super guarantee rate increasing on 1 July 2026?
No. The super guarantee rate stays at 12% for 2026-27 — unchanged from 2025-26. It reached the legislated final rate of 12% on 1 July 2025 and will not increase further under current law.
What is Payday Super and when does it start in Australia?
Payday Super is an ATO reform requiring employers to pay SG contributions at the same time as wages, starting 1 July 2026. Previously, quarterly payments were permitted. Under the new rules, super must be remitted with every pay run, making it visible on each payslip.
Does the 12% SG rate apply to casual and part-time employees?
Yes. Since the removal of the $450/month earnings threshold on 1 July 2022, the 12% SG rate applies from the first dollar earned for most eligible employees — including casuals and part-timers aged 18 and over. Check the ATO website for specific exemptions.
What happens if I miss a Payday Super payment?
Missing a payment triggers the ATO's shortfall interest charge from day one — there's no quarterly grace window anymore. Employers who fall behind will also need to lodge a Super Guarantee Charge statement with the ATO and may face additional penalties on top of the interest charges.
Shawn Martinez, CPA
Senior Tax Accountant
Shawn Martinez is a Certified Public Accountant with over 12 years of experience in Australian taxation and payroll compliance. He specializes in PAYG withholding, superannuation regulations, and ATO compliance for small to medium businesses.
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