Yes — in almost every case, super is payable on bonuses. Australian employers must pay superannuation at the current Super Guarantee rate of 12% on any bonus connected to work performed during an employee’s ordinary hours. That covers performance bonuses, sign-on bonuses, Christmas bonuses, retention payments, and referral bonuses. The only bonuses that escape the obligation are those tied exclusively to overtime or work outside ordinary hours, and the employer carries the burden of proving that separation.
The Ordinary Hours Test
The Superannuation Guarantee (Administration) Act 1992 requires employers to calculate super as a percentage of each employee’s Ordinary Time Earnings (OTE).1Federal Register of Legislation. Superannuation Guarantee (Administration) Act 1992 OTE means amounts paid for work during an employee’s regular hours, as set out in ATO ruling SGR 2009/2.2Australian Taxation Office. SGR 2009/2 The practical question for any bonus is simple: does the payment relate to the employee’s ordinary hours of work? If yes, super applies.
The label on the payment doesn’t decide the question. A bonus an employer calls “ex gratia,” “goodwill,” or “discretionary” still attracts super if it rewards service performed during regular hours.
Bonuses That Attract Super
The ATO publishes a list of payments classified as OTE, and the following bonus types all require super contributions:3Australian Taxation Office. List of Payments That Are Ordinary Time Earnings
- Performance bonuses paid for hitting targets or production goals during standard hours
- Sign-on bonuses offered to secure a new employee’s service
- Christmas bonuses, whether contractual or discretionary
- Retention bonuses paid to encourage an employee to stay
- Referral bonuses paid when an employee refers a successful hire
- Annual bonuses under contract, enterprise agreement, or employer discretion, where the bonus relates to ordinary hours
Bonuses That Don’t Attract Super
A bonus is excluded from OTE only if it relates entirely to work performed outside ordinary hours.2Australian Taxation Office. SGR 2009/2 In practice that means:
- A bonus paid solely because an employee worked beyond their standard schedule, or hit a goal exclusively during overtime hours
- A bonus for work conducted entirely on weekends that fall outside the employee’s regular roster
Mixed bonuses that reward a combination of ordinary and overtime work are not exempt. Without records clearly showing the bonus relates only to hours outside the ordinary schedule, the ATO will treat the payment as OTE and require the super contribution.
How Much Super Is Payable
The Super Guarantee rate reached 12% on 1 July 2025 and is legislated to remain at 12% for the 2025–26 and 2026–27 financial years.4Australian Taxation Office. Super Guarantee The calculation is the bonus amount multiplied by 12%.
A $5,000 performance bonus attracts $600 in super on top of the bonus. A $10,000 retention payment attracts $1,200. The super must be paid into the employee’s nominated fund on the same schedule as regular contributions.
The Ceiling for High Earners
Employers aren’t required to pay super on earnings above the Maximum Contribution Base (MCB). For 2026–27 the MCB is expected to be $250,000 annually, calculated as the concessional contributions cap of $30,000 divided by the 12% SG rate.5Australian Taxation Office. Maximum Contributions Base If total OTE for the year, including salary and bonuses, exceeds $250,000, the employer can stop making SG contributions on the amount above the cap. Before 1 July 2026 the MCB operated as a quarterly limit ($65,070 per quarter for 2024–25).4Australian Taxation Office. Super Guarantee
When the Super on a Bonus Must Be Paid
From 1 July 2026, Payday Super replaces the quarterly payment system. Employers must pay super contributions at the same time they pay salary or wages, with the money reaching the employee’s fund within seven business days of the payday.6Fair Work Ombudsman. Payday Super: New Rules Starting 1 July 2026 For a new employee’s first contribution the window extends to 20 business days.
This changes the timing for bonuses. Under the old quarterly system, an employer paying a bonus in August had until 28 October to remit the super. Under Payday Super, the super on that bonus must reach the fund within seven business days of the pay run that includes it. Employers running separate pay runs for bonuses have to treat those the same as any other payday.
If Your Employer Hasn’t Paid Super on Your Bonus
For pay periods before 1 July 2026, an employer who fails to pay super in full, on time, and to the correct fund must pay the Super Guarantee Charge (SGC). The SGC has three components:7Australian Taxation Office. The Super Guarantee Charge
- The SG shortfall, calculated on the employee’s total salary and wages for the quarter including overtime, rather than just OTE — which typically makes the shortfall larger than the original missed amount
- Nominal interest at 10% per annum, running from the start of the relevant quarter until the SGC statement is lodged
- An administration fee of $20 per employee per quarter
The SGC is not tax deductible, which makes it significantly more expensive than paying the super on time. The ATO pursues misclassified bonuses as part of its SG compliance work.
If you think super has been missed on a bonus, the ATO sets out a clear recovery process:8Australian Taxation Office. Unpaid Super From Your Employer
- Log into your super account or call your fund to confirm what has been received. You can also track employer contributions through ATO online services.
- Ask your employer when they paid, how much, and to which fund.
- Use the ATO’s “Estimate my super” calculator to compare what was paid against what you were owed.
- If the numbers don’t add up, report it through the ATO’s online unpaid super tool.
The Fair Work Ombudsman can also pursue unpaid entitlements, including taking the matter to court, and employees under the national workplace relations system can seek a court order under the Fair Work Act 2009.