What is changing on 1 July 2025
The super guarantee (SG) is the minimum super an employer must pay for each eligible employee. It is a percentage of the employee's ordinary time earnings, often called OTE. From 1 July 2024 the minimum is 11.5 percent. The Australian Taxation Office (ATO) says it is scheduled to rise to 12 percent on 1 July 2025.
The step is part of a long path. The rate was 9.5 percent from 2014-15 to 2020-21, then rose to 10 percent, 10.5 percent, 11 percent and 11.5 percent in the years since. The ATO table lists 12 percent for 2025-26 and for every year after that. This is the last step in the schedule.
Which date decides the rate
The rate that applies is the one in force on the day you pay the wages. It is not the date the work was done. The ATO gives a worked example. An employee finishes a pay period on 30 June 2024, and the employer pays on 3 July 2024. The new 11.5 percent rate applies, because payment fell after 1 July.
The same logic carries to this year. Wages paid on 1 July 2025 or later, even for work done in June, use 12 percent. A pay run that is paid on 30 June 2025 uses 11.5 percent. If your pay day sits close to the boundary, check which side it falls on.
What the extra 0.5 points costs
The change is small per person, but it adds up across a payroll. Use the same method as the ATO examples. Multiply OTE by the rate.
- OTE of $15,000 in a quarter at 11.5 percent: $1,725.
- The same OTE at 12 percent: $1,800.
- The difference is $75 for that employee for that quarter.
For a business with 20 staff on similar pay, that is about $1,500 more per quarter, or $6,000 a year. Put the new cost into your cash flow and pricing now, not after the first bill.
One limit applies to high earners. The maximum super contribution base sets how much of an employee's quarterly earnings count for SG. For 2025-26 it is $62,500 a quarter. That means the most an employer must pay for one employee in a quarter is $7,500. For 2024-25 the base is $65,070, so the 2025-26 figure is lower. Check the table for your own staff.
Payroll steps before 1 July
A short list is enough for most small businesses.
- Change the SG rate in your payroll software to 12 percent, with an effective date of 1 July 2025. Many providers update this on their own, but confirm it.
- Test one pay run. Take a sample employee and work out the super by hand. It should equal OTE multiplied by 0.12.
- Read your employment contracts, awards and agreements. If a contract says "11.5 percent", it may need a note. If an award or agreement sets a higher rate, that rate stays. The ATO says the SG percentage is only the minimum.
- Check what counts as OTE. Ordinary hours pay, most allowances and bonuses generally count. Overtime generally does not. The ATO keeps a list of payments that are OTE.
- Tell staff. A short note in the pay slip or an email avoids questions when the super line grows.
If you offer a package where super is "included", look at it with care. Under a total package, a higher SG can cut take-home pay unless the package changes. Raise this with the employee early and in writing.
Due dates and late payment
The due dates do not change. Super must be received by the employee's fund on or before the quarterly date. If a date falls on a weekend or public holiday, the fund must receive it by the next business day.
| Quarter | Period | Due date |
|---|---|---|
| 1 | 1 July to 30 September | 28 October |
| 2 | 1 October to 31 December | 28 January |
| 3 | 1 January to 31 March | 28 April |
| 4 | 1 April to 30 June | 28 July |
The first quarter at 12 percent is July to September 2025, due 28 October 2025. Quarter 4 of 2024-25, due 28 July 2025, is still paid at the rates that applied when each wage was paid.
Timing matters. A payment is counted as paid only when the fund receives it, not when a commercial clearing house gets it. A payment sent through one just before the due date may arrive late. The ATO's own Small Business Superannuation Clearing House is treated differently, so check its rules if you use it. If you miss the date, you must lodge a super guarantee charge statement and pay the charge. The ATO says late or missed payments are no longer tax deductible. The charge costs more than the SG itself.
A quick readiness check
Before 1 July, you should be able to answer yes to four questions.
- Does payroll show 12 percent for pay dates from 1 July 2025?
- Did a test pay run match a hand calculation?
- Is the extra cost in the budget and in your quotes?
- Do you send super early enough to reach funds by 28 October 2025?
The limit of this note: it covers the general rule for employers with standard employees. Contractors, salary sacrifice and special awards can change the sums. Check the ATO pages below or ask a registered tax or BAS agent for your own case.