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How do Australian employers pay superannuation contributions for casual employees?
Executive summary
From 1 July 2025 employers must pay the Superannuation Guarantee (SG) at a minimum rate of 12% of an employee’s ordinary time earnings (OTE), and this applies to most casual workers who meet eligibility rules [1] [2]. Employers calculate SG on OTE each quarter and must remit by quarterly due dates to a complying super fund, otherwise they risk penalties such as the Superannuation Guarantee Charge [1] [2] [3].
1. What "casual" means for super — eligibility in practice
Casual employees are generally entitled to SG just like part‑time and full‑time staff: the SG is paid if the worker is an eligible employee, and casual status alone does not exclude them from employer super contributions [4] [5]. Some narrow exceptions exist in broader SG rules (for example, certain non‑residents working overseas), but available sources do not list casual employment as an exemption from SG eligibility [4] [5].
2. How employers calculate the amount for casual hours — ordinary time earnings (OTE)
Employers calculate SG as a percentage of an employee’s OTE for the quarter; OTE are the payments for ordinary hours of work and include many types of pay such as regular wages, shift loadings and casual loadings, but commonly exclude overtime [1] [6]. The SG rate is 12% from 1 July 2025 and is applied to the worker’s OTE in the quarter to determine the quarterly liability [1] [7].
3. When and how payments must be made — cadence and reporting
Employers must make SG contributions at least quarterly into a complying super fund or retirement savings account and report super liabilities to the ATO (Single Touch Payroll is commonly used for reporting) — paying on time avoids the Superannuation Guarantee Charge and other penalties [2] [3]. Some awards, enterprise agreements or fund rules may require more frequent payments than quarterly, so employers should check those obligations [2].
4. Practical payroll details for casual pay patterns
Because casual employees’ hours and OTE can vary each pay period, employers normally calculate SG per pay or per quarter based on the OTE earned in that period; the ATO provides calculators and examples to help employers compute the correct contribution [1]. Casual loadings and allowances that form part of OTE should be included in the base for SG unless specifically excluded by law or the SGAA definition [6].
5. Caps, limits and high‑paid casuals
There is a quarterly maximum contribution base that caps the amount of earnings subject to SG; with the 12% rate in place employers should be aware of the maximum contribution base when calculating SG for higher‑paid employees [7] [8]. Employers do not need to pay SG on earnings above that maximum base for the purposes of the statutory minimum [9].
6. Common employer mistakes and enforcement
Late or incorrect payments trigger the Superannuation Guarantee Charge — a combination of interest and administration fees that is payable and not tax‑deductible — and employers must lodge SGC statements where applicable [3]. Employers who are uncertain about worker status (employee vs contractor), residency, or which payments count as OTE should use ATO tools and guidance to avoid misclassification [2] [3].
7. Employee perspective and variations across funds/agreements
Employees — including casuals aged 18 and over or younger casuals working more than 30 hours a week — are generally entitled to SG contributions, but an award or enterprise agreement can require higher employer contributions than the statutory minimum [2] [1]. Industry and employer funds (and some modern awards) sometimes pay above 12% or require contributions on additional pay components, so casuals should check their award, employment contract and super fund statements to confirm what’s being paid [1] [8].
8. Where to go next — tools and authoritative guidance
For step‑by‑step calculation, the ATO’s "How much super to pay" guidance and SG contribution calculator are the primary employer resources; industry super funds and employer portals also summarise obligations for 2025–26 and provide payroll guidance [1] [7] [8]. If unpaid super is suspected, employees can contact the ATO or use employer fund portals to query contributions [2] [10].
Limitations and note on sources: this summary relies on ATO‑based guidance and industry summaries in the supplied documents; available sources do not provide every corner case (for example, detailed treatment of particular award clauses or every contractor scenario), so employers with unique arrangements should consult the ATO guidance linked above or seek professional advice [1] [2] [3].