Is Super Going to 12.5% in July 2026? No. Here’s the Truth.
Plenty of business owners and employees are searching for this right now, and plenty of outdated content is giving them the wrong answer. Let’s clear it up in one sentence.
The super guaranteed rate is 12% from 1 July 2026. It is not going to 12.5%. There is no legislated increase scheduled. The rate is staying where it is.
Where the Confusion Comes From
The super guaranteed rate has been climbing steadily since 2021. It went from 10% to 10.5%, then 11%, then 11.5%, and finally to 12% on 1 July 2025.
That 0.5% annual increase pattern created an expectation that the rises would keep coming. But 12% was always the legislated end point. The Superannuation Guarantee (Administration) Act 1992 set out the schedule, and it stops at 12%.
Calls to lift the rate further to 12.5% or even 15% exist some industry groups have pushed for it. But none of that has become legislation. Under current law, the rate does not move in July 2026.
What Does Change on 1 July 2026
The rate isn’t changing. But something else significant is.
Payday Super starts from 1 July 2026. Until now, employers have been able to pay super quarterly, within 28 days after each quarter ends. From 1 July 2026, super must be paid on each payday, with the contribution reaching the employee’s fund within seven calendar days.
So, the amount per employee doesn’t change. The frequency does. A business with fortnightly payroll goes from four super payments a year to 26. A business running weekly payroll goes to 52.
Same annual cost. Very different cash flow pattern.
What It Costs Right Now at 12%
The math’s is straightforward. For every $100 an eligible employee earns in ordinary time earnings, you pay $12 into their super fund.
For a full-time employee on $70,000 a year, that’s $8,400 in super annually. On $100,000, it’s $12,000. The maximum super contribution base for 2025–26 is $62,500 per quarter, meaning contributions are capped at $7,500 per quarter per employee. You’re not required to pay super on earnings above that cap.
The “Plus Super” vs “Inclusive of Super” Trap
This is the detail that catches employers out most often when the rate changes. And even at a fixed 12%, it’s worth checking.
If an employee’s contract says their salary is “$80,000 plus super,” the super is on top of that figure. As the rate increased each year, the employer bore that extra cost.
If the contract says “$80,000 inclusive of super,” the super comes out of the $80,000. In that case, every time the rate went up, the employee’s take-home pay dropped slightly unless the total package was renegotiated.
With the rate now fixed at 12%, this distinction matters less for future increases. But it’s still worth knowing which type of contract you’re running for every employee, because it determines exactly how you calculate what they’re actually owed.
What to Check Right Now
Confirm your payroll software is calculating at 12%, not 11.5%. Most platforms updated automatically on 1 July 2025, but it’s worth verifying, especially if you’ve had software issues or switched providers since then.
Review any employment contracts that mention the super rate. If contracts reference a specific percentage rather than “the legislated super guaranteed rate,” they may need updating.
Prepare for Payday Super from 1 July 2026. The rate isn’t changing, but the payment frequency is. Check your cash flow can handle more frequent super outflows.
Check your super clearing house situation. The ATO’s Small Business Super Clearing House closes on 30 June 2026. You’ll need an alternative in place for Payday Super.
Frequently Asked Questions
Is the super rate going up in July 2026? No. The rate stays at 12%. There is no legislated increase.
Will it ever go to 12.5%? Not under current law. Some industry groups have lobbied for further increases, but none have passed Parliament.
What does change on 1 July 2026? Payday Super the timing of payments moves from quarterly to each payday, with contributions required to reach the fund within seven days.
Is 12% the final rate forever? Under current legislation, yes. Future governments could change that, but nothing is currently scheduled.
Get Your Payroll Right from Day One Talk to Edulink
Confused by super rates, Payday Super, and clearing house changes all hitting at once? That’s exactly what we handle every day.
Edulink Payroll Services charges $750 per employee, per year, covering payroll, compliance, and reporting, for small and medium businesses across greater Sydney and Campbelltown.
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📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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