Employer’s guide to Superannuation Guarantee contributions: Which employees are eligible?

The SG is money you pay to your workers to help provide for their retirement, and it generally forms part of their remuneration package. The quarterly contribution is a set amount of an employee’s salary or wages, with the current percentage rate set by the government.

If you have eligible employees, you must pay their SG contributions at least four times a year by the quarterly due dates and you must report these contributions electronically in a standard format.

Current SG rate

The SG rate is the percentage of your employee’s ordinary time earnings (OTE) that you must pay to their super fund.

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The SG rate is 12% from 1 July 2025. Refer to the table to find the rate for previous financial years.

Superannuation Guarantee rates (2002 to 2026)

As an employer, if you don’t pay the required SG contributions into your employees’ super accounts by the quarterly due date, you will have to pay a Superannuation Guarantee Charge (SGC) to the ATO. The SGC includes interest and an administration fee, as well as a super contribution for your employee based on your their salary and wages, which may be higher than the ordinary time earnings used to calculate SG.

Employers who don’t make their required SG payments into the correct super fund by the due date must report and rectify the missed payment by lodging an SG Statement and paying the SGC.

Am I an employer?

Work arrangements are no longer as straightforward as they were in the past when everyone tended to be a full-time employee. Whether or not you’re an employer and required to pay SG for your workers is not always easy to determine.

It’s worth noting that the definition of ‘employee’ used to determine whether an individual is entitled to SG contributions is outlined in Section 12 of the Superannuation Guarantee (Administration) Act 1992 and is not the same as the one used in tax law. The definition is further outlined in Superannuation Guarantee Ruling SGR 2005/1.

Who is eligible to receive the SG?

The short answer is that if you are paying an employee aged 18 or over who is not a private/domestic worker such as a nanny or housekeeper, you must make an SG contribution on behalf of your employee in addition to their wage or salary.

If your employee is aged under 18 or is a private/domestic worker, they must work for you for more than 30 hours in a week – regardless of how much you pay them – to qualify for SG payments. In this situation, you are required to make SG contributions on top of their wages for each week they work more than 30 hours.

Employees who are a company director or a family member working in your business are also eligible for SG contributions.

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If your employee is receiving a super pension or annuity while still working (this includes employees who qualify for transition-to-retirement payments), you must still make SG contributions on their behalf.

Common employee situations

Contractors

In general, if you have an agreement with a contractor that is mainly for their personal labour and skill rather than a set result, and the contractor must perform the contracted work personally, they are considered an employee for SG purposes.

This means you are required to make SG contributions on their behalf, even if the contractor provides you with their Australian Business Number (ABN).

In situations where you contract a company, trust or partnership rather than a particular person to provide the labour, you are generally not required to make SG contributions on the contractor’s behalf. 

An easy way to check if you are required to pay SG contributions for a contractor is to use the ATO’s Super Guarantee Eligibility Decision Tool.

Temporary residents

You must also make SG contributions on behalf of temporary residents like backpackers and working holidaymakers, as they are entitled to receive SG payments.

When a temporary resident eventually leaves Australia, they are allowed to claim their super (less the relevant tax) through the Departing Australia Superannuation Payment (DASP) program. The ATO website has more detailed information about eligibility for the DASP here.

Employees working overseas

If you send one of your local employees overseas to work temporarily, you are still required to pay SG contributions for the employee.

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SG payments are required even if the other country requires you or your employee to pay super (or its equivalent) in that country. Australia has bilateral agreements in place with certain countries, so you’re not required to pay super in those jurisdictions. You must, however, continue to pay SG contributions for your employee in Australia.

To receive an exemption under a bilateral agreement, you must provide the authorities in the other country with a Certificate of Coverage, which can be obtained from the ATO. You can apply online for a certificate.

If you apply for a Certificate of Coverage for an employee working overseas, you must declare you will continue to make SG contributions into a super fund for them while they are overseas and will keep records of these payments. If you fail to comply, the certificate will be cancelled, and the relevant foreign authorities notified.

Domestic workers

If you employ someone to undertake domestic or private work for you that takes more than 30 hours a week, you are required to make SG contributions on their behalf, regardless of how much you pay them.

The ATO defines ‘domestic or private’ work as work that relates personally to you – not your business. This work relates to your home, household affairs or family and usually covers roles such as nanny, housekeeper or carer.

If you engage an employee as a carer or other domestic worker using money you receive from the National Disability Insurance Scheme (NDIS), you are required to make super contributions for them. This only applies if you choose to manage your NDIS plan yourself.

Self-employed

If you are self-employed and operate as a sole trader or in a partnership, you are not required to make SG contributions on your own behalf. You may, however, choose to make personal contributions as a way of saving for your retirement.

If you have established a company, the company must pay SG for any eligible workers, including you.

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Who’s not eligible to receive SG contributions?

• Non-resident employees you pay for work they do outside Australia
• Senior foreign executives holding specific visas and entry permits
• Members of the army, navy, or air force reserve for the work they carry out in that role
• High-income employees working for multiple employers who chose to opt out of receiving SG contributions and who have provided you with an SG employer shortfall exemption certificate covering a specific quarter
• Any employee working temporarily in Australia who is covered by a bilateral super agreement. (Keep a copy of your employee’s Certificate of Coverage to verify they are exempt.)

If you are a non-resident employer, you are not required to pay super for resident employees for work they do outside Australia.