Definition
Super (Superannuation) is the Australian compulsory employer-funded retirement savings system. Employers must pay a percentage of each employee’s ordinary time earnings (OTE) into a complying super fund: the Super Guarantee (SG) rate is 12% from 1 July 2026, the stable rate after a gradual ramp-up from 9.5% over the 2021-22 to 2024-25 period. Remittance is quarterly through SuperStream-compliant clearing houses. Late or unpaid super triggers the Superannuation Guarantee Charge (SGC), a significant non-deductible penalty.
What super means in practice
For an Australian bookkeeper, super is the largest single non-wages cost in payroll. On AUD 1,000 of OTE, the employer pays AUD 120 of super (at 12%) on top. This is paid into the employee’s chosen super fund (or the employer’s default fund if the employee has not made a choice), not to the ATO. Super is reported via Single Touch Payroll Phase 2 in real time at each pay run, alongside the gross wages and PAYG withholding.
The remittance mechanism is SuperStream, an electronic data and payment standard that lets employers pay all super contributions in a single SuperStream submission that the clearing house then splits and forwards to the correct super funds. Most accounting platforms (Xero AU, MYOB, QuickBooks Online) include SuperStream-enabled super processing as part of payroll: a single click submits all the super for the quarter.
A practical example: an AU consultancy with 8 employees on a fortnightly payroll cycle. Total OTE for the quarter Q1 2026-27 (Jul-Sep 2026): AUD 240,000. Super at 12%: AUD 28,800. The bookkeeper submits via Xero’s SuperStream integration on 25 October 2026 (ahead of the 28 October deadline). The clearing house splits the AUD 28,800 between 8 different super funds based on each employee’s choice and pays each fund within a few business days. The whole process takes minutes.
How super works by country
Australia
Super Guarantee (SG) rate: 12% of ordinary time earnings from 1 July 2026 (the rate having ramped up from 9.5% in 2021-22 by 0.5pp per year). Quarterly remittance through SuperStream-compliant clearing houses by 28 days after quarter end. Late or unpaid super triggers the Superannuation Guarantee Charge (SGC): a non-deductible penalty equal to the shortfall plus interest plus an administration fee, with the underlying SG amount also losing its deductibility for income tax. The SGC is a meaningful penalty even on small shortfalls and is the reason most AU employers prioritise super payment ahead of the deadline.
United Kingdom
The United Kingdom uses auto-enrolment pension contributions, mandatory for most employers since 2018 (after a phased introduction starting 2012). The default minimum combined contribution is 8% (3% employer, 5% employee including the 1% tax relief that HMRC adds). Employees are auto-enrolled into the employer’s chosen scheme (typically NEST, Smart Pension, The People’s Pension, or Aviva) and can opt out, but are re-enrolled every three years.
Canada
Canada uses Canada Pension Plan (CPP) and (in Quebec) Quebec Pension Plan as the equivalent compulsory contributions. Employer and employee both contribute. The CPP enhancement (CPP2) added a second tier of contributions above the Year’s Maximum Pensionable Earnings starting in 2024, gradually increasing the contribution ceiling.
New Zealand
New Zealand uses KiwiSaver. Employee default 3% (can opt for 4%, 6%, 8%, 10%); employer default 3%. Employees can opt out within 8 weeks of starting a new job; after that they are locked in until 65 or until they take a contributions holiday. Government contribution of NZD 521.43 per member-year (capped) for member contributions of at least NZD 1,042.86 per year.
Singapore
Singapore uses CPF (Central Provident Fund). Rates vary by age band and worker type. Citizens and PRs aged 55 and under: 17% employer, 20% employee = 37% total. Lower rates above 55, reflecting reduced retirement-savings need. Foreign workers (Employment Pass holders) are exempt from CPF.
Related terms
Super is the AU compulsory retirement contribution:
- PAYG is the parallel AU income-tax withholding regime.
- Single Touch Payroll reports super alongside wages and PAYG.
- Payroll is the broader process super sits inside.
- NIC is the UK equivalent social-contribution regime (covering wider social benefits than just retirement).
See also
For the AU payroll workflow that super sits alongside, see the payroll and Single Touch Payroll entries.
FAQ
See the answered questions above for the 2026 SG rate, ordinary time earnings, and remittance deadlines.