Super Guarantee Rate Now 12%
From 1 July 2025, the Super Guarantee rate increased from 11.5% to 12%. This is the final step in the gradual increase that’s been legislated for years.
What this means:
- Employers must now contribute 12% of ordinary time earnings to employees’ super
- For someone earning $100,000, that’s an extra $500 per year going into retirement savings
- Business owners need to update payroll systems immediately to avoid compliance issues with the ATO
Action required: If you haven’t already adjusted your payroll to the new 12% rate, do it now. Underpayment penalties have increased significantly, and the ATO monitors compliance through Single Touch Payroll data.
Payday Super Coming in 2026
From 1 July 2026, employers will be required to pay super at the same time as wages—known as “Payday Super.”
Currently, employers can pay super quarterly. From mid-2026, super must be paid with every pay run—weekly, fortnightly, or monthly depending on your payroll schedule.
What this means:
- Smoother super contributions for employees who can track their super in real time
- Significant changes to payroll processes and cash flow management for employers
- Moving from quarterly lump sum payments to regular pay-period contributions
Planning for Payday Super:
Businesses have roughly 12 months to prepare. This includes updating payroll software, adjusting banking arrangements, and modelling the cash flow impact of moving from quarterly to weekly/fortnightly super payments.
For businesses running tight cash flow, the shift from quarterly to pay-period super could create pressure. Start planning now.
Other Super Changes for 2025/2026
Several super thresholds increased from 1 July 2025, including the transfer balance cap (now $2 million) and various contribution limits. The concessional contribution cap remains at $30,000, and the non-concessional cap remains at $120,000.
For detailed information on all threshold changes, visit the ATO’s super rates and thresholds page.
Need Help?
These super changes affect your payroll, cash flow, and compliance obligations. If you need assistance updating systems, understanding the changes, or planning for Payday Super, get in touch.
At Navigate Advisory, we help business owners and employees navigate super changes so you stay compliant and make the most of your retirement savings.
Book an introductory chat at navigateadvisory.com.au/contact/
Navigate Advisory has offices in Balmain, Brighton-Le-Sands and Hurlstone Park.
Any advice provided in this article is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.