Do Casual Employees Get Paid Superannuation in Australia?

Do Casual Employees Get Superannuation? The Short Answer

Yes. Casual employees in Australia are entitled to superannuation under the Superannuation Guarantee (SG) legislation. This is not optional — it is a legal obligation for employers, and it applies to most casual workers regardless of hours worked or earnings per month.

The rules changed significantly on 1 July 2022, when the $450 per month minimum earnings threshold was abolished. Before that date, casual employees who earned less than $450 in a calendar month were not entitled to super. That threshold no longer exists.

Who Is Entitled to Super: Casual Employee Rules

The one remaining exception for adult casuals is domestic workers — people employed in or around a private residence for domestic duties (housekeeping, garden work, childcare in a private home). These workers still need to exceed 30 hours per week to trigger super entitlement, even if they are adults.

The Super Rate for Casual Employees: 2025–26

The Superannuation Guarantee rate for 2025–26 is 11.5% of ordinary time earnings (OTE). This rate applies to all eligible employees including casuals. The rate schedule toward the legislated 12% final target is:

The 11.5% applies to ordinary time earnings — not total earnings. Understanding what counts as OTE is critical for correct payroll setup.

What Counts as Ordinary Time Earnings for Super?

Ordinary time earnings are the amounts paid in connection with an employee's ordinary hours of work. For casual employees, this typically includes:

• The hourly base rate
• The casual loading (typically 25%) — yes, super applies to the casual loading
• Weekend penalty rates and public holiday rates if they relate to rostered ordinary hours
• Shift loadings and allowances that form part of the award entitlement for ordinary hours
• Commissions and bonuses tied to work performance during ordinary hours

What is excluded from OTE (and therefore not subject to super):

• Overtime pay — hours worked beyond what the award or agreement defines as ordinary hours
• Expense reimbursements (genuine reimbursements, not allowances)
• Workers compensation payments while not at work

One of the most common payroll errors we see is incorrect Xero payroll setup where overtime is coded as OTE, resulting in over-payment of super, or where casual loadings are excluded, resulting in under-payment. Both create compliance issues.

When Must Employers Pay Super for Casual Workers?

Super must be paid to the employee's super fund by the quarterly due dates:

These are the dates that super must be received by the employee's fund, not just sent. If you send the payment the day before and the fund processes it one day late, you are technically non-compliant. Most payroll services and clearing houses allow 3–5 business days for processing, so payment should be initiated well before the due date.

Payday Super: Coming 1 July 2026

From 1 July 2026, Australia is moving to Payday Super — employers will be required to pay super at the same time as wages, not quarterly. This significantly changes cash flow planning for employers. If you run casual payroll with variable weekly costs, budgeting for super as a weekly expense rather than a quarterly lump sum will be important to prepare for now.

What Happens When Casual Employee Super Is Not Paid?

Failure to pay super on time triggers the Superannuation Guarantee Charge (SGC). The SGC is not just the unpaid super amount — it includes:

• The unpaid super amount (calculated on total salary and wages, not just OTE — a broader base)
• Interest at 10% per annum from the start of the quarter
• An administration charge of $20 per employee per quarter

Critically, the SGC is not tax-deductible, unlike regular super contributions which are a deductible business expense. This turns a $1,000 super obligation into a $1,100+ SGC liability that cannot reduce your taxable income.

The ATO actively investigates unpaid super. Employees can report through the ATO's online portal and the ATO pursues these claims — including issuing Director Penalty Notices to company directors when unpaid super remains unresolved.

Employee Choice of Super Fund for Casual Workers

Casual employees have the same right as permanent employees to nominate their super fund. Under the Superannuation stapling rules introduced in November 2021, if an employee doesn't nominate a fund, you must check with the ATO whether they have a stapled super fund before using your default fund.

The stapling process works via the ATO's Online Services for Business or via Xero's super integration, which handles the stapled fund lookup automatically. Not checking for a stapled fund and paying to your default fund when a stapled fund exists means you've still met the obligation — but the employee then needs to consolidate, which causes unnecessary fees and paperwork. Best practice is to always check.

Casual Employees and the Super Guarantee: What Employers Often Get Wrong

• Still applying the old $450 threshold — this rule was abolished in 2022. Any payroll software or process still filtering out low earners from super is wrong.
• Not including casual loading in super calculations — the 25% loading is OTE and super applies to it.
• Treating irregularly rostered casuals as contractors — if the worker provides labour (not a result), works under your direction, and uses your equipment, they are likely an employee for super purposes regardless of what the agreement says.
• Paying late because cash flow is tight — late super becomes SGC, which is more expensive and not deductible. If cash flow is the problem, restructuring pay cycles to provision super weekly is better than missing quarters.
• Not updating Xero payroll templates when the SG rate changes — the rate went up in FY25, goes to 12% in FY27. Payroll templates need to be reviewed annually.

At True Tally, we set up and manage Xero payroll for businesses with casual-heavy workforces — hospitality, trades, allied health clinics and retail. Correct super setup from day one prevents the SGC liability that always costs more to fix than to prevent.

Frequently Asked Questions