Paying compulsory super - Superannuation Guarantee

Your business needs to pay eligible employees a minimum level of super, to help them save for retirement. This is called the Superannuation Guarantee (SG).

Who you need to pay super to  

You’re required to pay super to full time, part time, and casual workers who are:

• Aged 18 or over, regardless of the hours they work
• Aged under 18 and working more than 30 hours a week.

This includes apprentices, trainees and some contractor arrangements. It doesn’t matter how much your employee earns, if they’re eligible you still have to pay their super.

For more information about who’s eligible, visit the Australian Taxation Office (ATO) website.

Pay the right amount of super

From 1 July 2025, the SG contribution rate is 12% of ordinary time earnings (OTE).

This rate may be higher if there's an Industrial or Enterprise Bargaining Agreement (EBA) or Award in place.

Pay super on time (usually monthly)

Paying on time is important. Did you know unpaid or late super payments could result in your employees’ insurance cover stopping? Not paying on time could also result in penalties and interest charges from the ATO.

We require registered employers to make monthly contribution payments. This means our members’ money is in their super account sooner, and investment earnings can begin as soon as possible.

Quick tips

• If you don’t have any members to pay in a month, remember to submit a nil contribution so we don’t follow you up about outstanding payments.
• If you’re not a registered Cbus employer, and you’re not required to make monthly contributions under an award or industrial agreement, you can choose to make quarterly contributions.

When to make payments

Offer employers choice of super fund

You must offer choice of super fund by:

• Giving new employees a Choice of Fund form (like our Choice of super fund: standard choice form) within 28 days of them starting
• Employees can choose their own super fund or your nominated default super fund by completing and returning the Choice of Fund form. You must then pay contributions to their chosen fund, within two months
• If they don't make a choice, you must search for their ‘stapled’ super fund in ATO online services.

What is a stapled super fund?

A person’s 'stapled' super fund follows them from job to job, unless they choose a different super fund. Having a stapled super fund means workers are less likely to have multiple super funds opened on their behalf, and this helps to protect their super savings from multiple sets of fees.

When there’s no stapled super fund

If your new employee doesn't make a choice and they don't have a stapled fund - for example, this may be their first job - you must pay their super into your default super fund.

For more information about stapled super funds, head to the ATO web page - Stapled super funds for employers.

Decide on a default super fund for your business

A default super fund is the super fund that your business nominates as the best fit to take care of the super needs for your employees.

By nominating us as your default fund, you’ll join the leading national super fund for your industry. Read more on our Why Cbus page.

If we’re your default super fund, you can:

• Let new employees know that we’re your default super fund. Give them factual information about us and let them know they can get more information on our website
• Provide them with a Product Disclosure Statement, alongside the Choice of Fund form, like our Choice of super fund: standard choice form
• Ask us to provide information sessions for new employees as part of their induction, and
• Refer new employees to the ATO website or the Choosing a super fund section of moneysmart.gov.au.

You can't:

• Recommend or encourage new employees to join us or any other fund
• Give financial product advice, or advise them to consolidate their super.

For more information, visit ASIC’s website – Communicating with employees about choice of superannuation fund: What you can and cannot do.

Keep the right records

You need to keep the following records in English for at least five years:

• Records showing the Choice of super fund form has been given to all eligible employees
• Details of employees who don’t have to be offered a Choice of super fund form
• Documents showing you’ve made super contributions to an employee's chosen fund
• Records confirming that your default super fund is a complying fund. Download our Complying Fund Letter that confirms we’re a complying super fund.

Supply tax file numbers

When an employee provides you with their tax file number (TFN), by law you’re required to provide this information to their super fund within 14 days or when making the first contribution on their behalf.

If the TFN isn’t provided to us, your employee won’t be able to make personal contributions and they may pay more tax on their super.

For more information visit the ATO website.

Use a compliant online system

Under the government’s SuperStream standards, you need to make your employees’ super payments and submit payroll data electronically, in a standard format.

By using a SuperStream compliant provider, such as a clearing house or payroll system, it’ll be easier to avoid mistakes, late contributions, and ATO penalties.

We offer a simple, free option for registered employers

The Cbus Clearing House (QuickSuper)¹ is fully compliant, and makes it fast and easy to pay employees’ super, no matter how many people you employ. You can pay into multiple funds with one single data file and payment, and we’ll distribute payments to all super funds on your behalf.

Get started with the Cbus Clearing House

You’ll need to create an Employer Online account and join as a Cbus employer.

Simply complete the online join form and we’ll email you an activation link so you can set up your account and login.

For more information on SuperStream for employers, visit the ATO website.
 

Keeping up with important changes, like Payday super

In the 2023-24 Federal Budget, the Government announced that from 1 July 2026, employers will be required to pay workers’ super at the same time they pay salary or wages.

Payday super is not yet law

Payday super aims to create a fairer super system. While most employers do the right thing, unpaid super remains an issue that affects one in four Australian workers. In the 2021-2022 financial year, 2.8 million Australians missed out on super worth $5.1 billion².

If it’s introduced as planned from 1 July 2026, Payday super will help address unpaid super by:

• Helping ensure that super contributions are made on time
• Giving workers better visibility of when their super is paid and a clearer picture of their retirement savings.

What Payday super will mean for you

Payday super will be a significant change for employers. Many of you currently pay super monthly, while others pay quarterly.

Paying super on pay day means fewer liabilities building up over time, which may make managing cash flow easier. It lines up with payroll processes, which may reduce the administration of making separate super payments.

When will Payday super become law and when will changes occur?

• On 14 March 2025, the Government released Payday super draft legislation which proposes to implement design principles outlined in their September 2024 Payday super fact sheet (PDF).
• If the legislation passes, Payday Super is currently proposed to come into effect on 1 July 2026.

¹ The Cbus Clearing House is provided by Westpac Banking Corporation ACN 007 457 141 AFSL 233714 for Cbus employers. Cbus’ clearing house (QuickSuper) is a free service for Cbus employers, and is easy to set up once you’ve activated your Employer Online account.
² Fixing unpaid super: Making super fairer for workers and employers alike, Super Member’s Council.