Superannuation (or super) is a type of long-term savings for retirement. Businesses and organisations must pay super to their employees, as well as to some independent contractors, entertainers and performers.
Learn more about who gets super.
From 1 July 2026, super must be paid at the same time as wages, salary or fees are paid. This is known as Payday Super. Super cannot be paid directly into someone’s bank account — it must be paid into their super fund.
If you haven’t paid someone super before — learn more about setting up to pay super.
Once your business or organisation is set up to pay super, the steps on this page can help you get super payments right for each of your employees and eligible independent contractors.
For artists and arts workers
Employees andindependent contractors can make contributions to their own super funds. You don't have to, but it can be a good way to boost your retirement savings.
Learn more about ways to increase your super.
Step 1—Get the super details you need
Before you can pay someone super, you need to get:
- Their personal details — their full name and date of birth.
-
Their super fund details:
- the name of their chosen super fund
- their super fund member number
- their Unique Superannuation Identifier (USI).
Ask them for their choice of fund by completing a standard super choice form. Most people are eligible to choose their own super fund (and many will already have one).
- For employees — their tax file number (TFN).
- For independent contractors entitled to super — their Australian Business Number (ABN) if they have one.
Get the details before the first pay
You need to make the first payment to their nominated super fund within 20 business days of the first payday, so be sure to get the super fund details before the first payday.
Check their fund before you make any payments
You also need to check that their fund is compliant before making any payments. Funds must:
- be an Australian Prudential Regulation Authority (APRA) regulated complying fund
- offer a MySuper product, and
- meet compliance requirements.
To find out:
- look them up at Superfund Lookup
- look for the super fund’s Letter of Compliance on their website, or
- contact the fund and ask if it is compliant and offers a MySuper product.
Getting the details right
It's really important to get the details right. The wrong details can lead to failed payments and penalties.
If they don’t provide you with details of a chosen super fund
Start by following up with them. They may simply have forgotten. Keep a record of your request.
If they still don’t provide you with details, you will need to contact the ATO to ask for their stapled fund. Follow the ATO's steps for requesting stapled super fund details.
- If they have a stapled fund — You must pay contributions into that fund. Check that the fund is compliant before making any payments.
- If they don’t have a stapled fund — Super gets paid into your default fund. If your business doesn’t already have a default fund, you will need to select one. Learn more about choosing a default super fund for your business.
Step 2—Calculate how much super to pay
The Payday Super formula
Super payable = Qualifying earnings (QE) X the Superannuation Guarantee (SG) rate
There are two amounts you need to know to calculate how much super is payable:
- Qualifying earnings (QE), and
- the Superannuation Guarantee (SG) rate.
| Qualifying Earnings (QE) | Superannuation guarantee (SG) |
|---|---|
|
Qualifying Earnings (QE) are the earnings (wages, salary or fees) that ‘qualify’ for super. For employees: QE includes:
There might also be obligations under the employee’s award or enterprise agreement. For independent contractors entitled to super: QE includes payments for their labour. Whether super applies will depend on whether the contract is mainly for the independent contractor’s labour. Super does not apply to amounts for materials, equipment, reimbursements or GST. If an independent contractor’s invoice includes both labour and other costs (like materials or expenses), super is usually calculated only on the labour component, not the full invoice amount. If it's not clear how to split labour and non-labour components, start by checking any relevant terms of the contract. If you're still not sure, contact the ATO for advice. For businesses who are used to paying super quarterly — QE closely align with (and largely replicate) current OTE. |
The current Superannuation Guarantee (SG) rate is 12%. |
In practice:
Calculating super for employee wages or salary
You have an employee who is paid $1,500 a week before tax.
The formula: Super payable = Qualifying earnings (QE) X the Superannuation Guarantee (SG) rate
Your calculation: Super payable = $1,500 X 12%
This makes the Super payable: $1,500 × 0.12 = $180
$180 must be paid to, and received by, the employee’s super fund within 7 business days.
When to calculate super under Payday Super
You need to calculate how much super is payable each time you pay it.
For employees who are paid weekly, you calculate it each week. For employees paid fortnightly, calculate it each fortnight, and so on.
For independent contractors who are entitled to be paid super, calculate the payable amount at the time you pay the invoice.
Keep learning:
Step 3—Pay super and submit data electronically
From 1 July 2026:
- super must be paid at the same time as wages, salary or fees are paid, and
- the super fund must receive the payment within 7 business days.
Super contributions must be paid:
- electronically
- into a superannuation fund (not directly into someone’s bank account)
- using a SuperStream-compliant system.
Independent contractors should not invoice for super
If an independent contractor is entitled to super — super is paid separately and in addition to any invoiced amount. The business or organisation that hires them must pay the super directly into the independent contractor’s super fund. Paying super directly to the independent contractor may result in penalties for the hirer.
If an independent contractor is not entitled to super — the independent contractor can choose to make their own contributions to their super fund. These contributions should not be included on their invoice.
Keep learning:
Step 4—Keep records
Keep records to show:
- that you asked your employees to choose a super fund
- the super contributions you made to your employees.
You need to keep these records for at least 5 years.
Keep learning:
What happens if you get it wrong
The Australian Tax Office knows most businesses and organisations want to do the right thing.
If you make an honest mistake and take steps to fix it quickly, you won’t be the focus of ATO compliance action.
But paying super – the right amount, and on time – is one of the ways we create sustainable creative careers for artists and arts workers.
It’s also the law. Unpaid and underpaid super can lead to repayments, which can impact your cash flow, professional reputation, and your ability to run your creative organisation. There can also be financial penalties for getting it wrong.
The ATO has lots of information to help you get super right, including these simple checks for super success.
Keep learning:
More in this section:
About super
Superannuation (or super) is a type of long-term savings for retirement. Businesses and organisations must pay super to their employees and to some independent contractors.
Who gets super
Employers and hirers must pay super for employees and some independent contractors, including certain performers, creatives and arts workers.
Changing to Payday Super
From 1 July 2026, super contributions must be paid at the same time as wages, salary or fees are paid. Follow the steps to get your organisation or business ready for Payday Super.
Setting up to pay super
Follow the steps to get your organisation or business ready to pay super for your workers.
Getting super — for artists and arts workers
Employers and hirers are responsible for paying super — but there are things you can do to make sure you are informed about your super payments, and ways to boost your own super.
