Picture this: you're managing payroll for your creative team, juggling invoices, and trying to keep the rhythm of your business flowing smoothly. Then it hits you – have you got your Super Guarantee sorted for the new financial year? Before you hit the wrong note with the ATO, let's tune into what's happening with super in 2026/2027. Because whilst your creative work might be all about breaking the rules, your super obligations definitely aren't.
Let's cut straight to the chorus: the Super Guarantee rate for the 2026/2027 financial year is 12% of ordinary time earnings (OTE). This rate hit its peak on 1 July 2025 and remains steady at 12% for 2026/2027 and beyond – so you can finally stop recalculating every year.
This 12% represents the minimum percentage employers must contribute to eligible employees' superannuation funds. It's the finale of a progressive increase that started back in 2021, when the rate sat at 10%. Think of it as a crescendo that's finally reached its climax.
| Financial Year | Super Guarantee Rate |
|---|---|
| 2021/2022 | 10.0% |
| 2022/2023 | 10.5% |
| 2023/2024 | 11.0% |
| 2024/2025 | 11.5% |
| 2025/2026 | 12.0% |
| 2026/2027 | 12.0% |
| 2027/2028 onwards | 12.0% |
The good news? No more annual increases to factor into your cashflow projections. The 12% rate is here to stay, giving you one less variable to worry about when budgeting for your creative team's remuneration packages.
Right, let's break down the mathematics – and don't worry, this isn't quantum physics. The Super Guarantee is calculated on Ordinary Time Earnings (OTE), not total salary. OTE includes your employees' regular earnings for their ordinary hours of work, which encompasses:
Importantly, OTE excludes things like overtime payments (when ordinary hours are clearly defined), expense reimbursements, termination payments, and paid parental leave.
Here's the basic calculation formula:
Super Guarantee = OTE × 12%
There's a ceiling to this performance. The Maximum Contribution Base (MCB) for the 2025/26 financial year is $62,500 per quarter. This means you're not required to pay super on earnings above this quarterly threshold. At the 12% rate, the maximum quarterly super payment is $7,500.
Let’s look at two practical examples:
Example 1: Employee earning $50,000 in OTE for Q1
Example 2: Employee earning $70,000 in OTE for Q1
The MCB is indexed annually in line with Average Weekly Ordinary Time Earnings (AWOTE), with updates typically released in February each year.
Timing is everything – in music, in comedy, and definitely in super payments. Miss your deadline, and you'll face penalties that'll make your accountant weep.
For the first half of 2026/2027 (July-December 2026), super contributions continue under the quarterly payment system:
| Quarter | Period | Payment Due Date |
|---|---|---|
| Q1 | 1 July – 30 September | 28 October 2026 |
| Q2 | 1 October – 31 December | 28 January 2027 |
| Q3 | 1 January – 31 March | 28 April 2027 |
| Q4 | 1 April – 30 June | 28 July 2027 |
Critical detail: Contributions are considered paid when the super fund receives them, not when you send them. If you're using a commercial clearing house, factor in processing time – it can take up to 14 business days. Starting the payment process a couple of weeks before the deadline is like doing a soundcheck before the gig; it's just good practice.
Mark these dates in your calendar like they're headline festival slots. Missing them triggers a world of compliance pain we'll discuss shortly.
Here's where things get interesting. From 1 July 2026, Australia introduces Payday Super – arguably the most significant superannuation reform in recent years. Under Payday Super, employers must pay superannuation contributions on a "payday" basis – within 7 business days of paying salary and wages – rather than quarterly. This means super gets paid when your employees get paid, whether that's weekly, fortnightly, or monthly.
For creative businesses that might pay team members on different schedules, this introduces a new layer of administrative complexity. Your payroll cadence directly dictates your super payment schedule.
The government’s rationale is straightforward: paying super alongside wages reduces the risk of underpayment, gives employees earlier access to their retirement savings, and makes it easier for the ATO to identify non-compliance through Single Touch Payroll data matching.
Recognising that this is a major operational shift, the ATO has issued a Draft Practical Compliance Guideline (PCG 2025/D5) to support first-year compliance. In short, while they may be relatively understanding as businesses adapt, penalties still apply for deliberate non-compliance.
Missing a super payment isn't like missing band practice – the consequences are significantly more expensive. When super isn’t paid by the quarterly due date, employers must pay the Superannuation Guarantee Charge (SGC), which comprises three components:
Remember, the SGC is not tax-deductible, meaning you're effectively paying twice – once as the shortfall and again losing the tax deduction benefit.
Not every person on your payroll requires super contributions, but the net is cast wide. You must pay super to:
Certain exceptions apply, and for creative contractors the eligibility can be complex. If in doubt, seek professional advice to avoid underpayment penalties.
Beyond Payday Super, another initiative is the Paid Parental Leave Superannuation Contribution (PPLSC). From 1 July 2025, eligible parents receive super contributions on government-funded Paid Parental Leave at the 12% rate. The payments under this scheme begin during the 2026/27 financial year, with the ATO paying directly into the employee’s super fund.
Contribution caps remain stable:
Compliance isn’t glamorous, but it's essential. The ATO expects comprehensive record-keeping to demonstrate that your super obligations are met correctly. Keep detailed records of employee details, OTE calculations, super fund information, and payment confirmations. Regular reconciliation of your super obligations will help you address discrepancies promptly.
While super is a legal obligation, smart businesses can use it as an employee retention and attraction tool. By ensuring timely and accurate super contributions, you enhance your employer brand – a critical edge in competitive creative industries.
With Payday Super launching mid-2026, preparation is crucial. Audit your current payroll systems, upgrade your technology where needed, adjust cashflow forecasts, and ensure your team is trained on the new requirements.
Understanding and managing your Super Guarantee obligations effectively ensures not only compliance but also contributes to a sustainable financial future for your employees. Whether you're a design studio, a boutique agency, or a freelance operation with a growing team, getting super right is as essential as hitting the perfect note in your creative work.
The Super Guarantee rate for 2026/2027 is 12% of Ordinary Time Earnings (OTE). This rate, which came into effect on 1 July 2025, remains unchanged for the upcoming financial year and beyond.
Payday Super starts on 1 July 2026. It requires employers to pay super contributions within 7 business days of disbursing wages, aligning super payments with pay cycles rather than quarterly schedules. This change may require updates to payroll systems and cashflow management.
If you miss a super payment deadline, you'll incur a Superannuation Guarantee Charge (SGC) consisting of the shortfall amount, nominal interest at 10% per annum, and an administration fee of $20 per affected employee per quarter. Additional penalties can apply for delayed lodgement or false statements.
Casual employees are eligible for the full 12% Super Guarantee. Contractors may also be entitled to super if their contract is mainly for personal labour (typically more than 50% labour component) and they perform the work personally. However, specific rules apply, so professional advice is recommended.
Super Guarantee contributions are calculated by multiplying an employee’s Ordinary Time Earnings (OTE) by 12%. Remember that OTE includes base salary, most allowances, bonuses for ordinary hours, and certain leave payments, while excluding overtime, expense reimbursements, and termination payments. The calculation also respects the Maximum Contribution Base cap.
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