Yes — in most cases your employer must pay superannuation on your bonus. If the bonus relates to work you did during your ordinary hours, it counts as ordinary time earnings (OTE), and your employer owes the 12% super guarantee on top of it. A $5,000 performance bonus means an extra $600 in your super fund; a $10,000 bonus means an extra $1,200.
There is one important exception: a bonus paid solely for work done entirely outside your ordinary hours — overtime-only work — does not attract super. Everything else, from Christmas bonuses to sign-on payments, generally does. This guide explains the test the ATO applies, which bonuses count and which do not, how the numbers work, and what to do if your employer has not paid super on a bonus.
Assumptions used in this article: Figures use the 2025–26 super guarantee rate of 12% and the ordinary time earnings rules that apply until 30 June 2026. From 1 July 2026, payday super changes the timing and the calculation base, as explained below.
The simple rule: does the bonus relate to your ordinary hours?
Under the Superannuation Guarantee (Administration) Act 1992, employers must contribute a percentage of each eligible employee’s ordinary time earnings into a complying super fund. The rate is 12% for both the 2025–26 and 2026–27 financial years. OTE means the amount paid for work during your regular hours — and the ATO’s ruling SGR 2009/2 confirms that bonus payments made as a reward for good performance are OTE “in most cases”.
The practical question for any bonus is straightforward: does the payment relate to your ordinary hours of work? If yes, it is OTE and super applies. The timing of the payment does not matter — a bonus paid in December for work completed in March is still OTE if the underlying work was done during ordinary hours. And if a bonus recognises both ordinary work and long hours, the ATO does not allow the employer to split it into an ordinary-hours portion and an overtime portion: the whole bonus is OTE.
Which bonuses attract super?
| Bonus type | Super payable? | Why |
|---|---|---|
| Performance bonus | Yes | Reward for results during ordinary hours |
| Sales commission | Yes | Commissions are OTE |
| Christmas bonus | Yes | Paid for the year’s ordinary work |
| Sign-on bonus | Yes | Part of the ordinary-hours employment package |
| Retention bonus | Yes | Reward for staying in ordinary-hours employment |
| Referral bonus | Yes | Connected to ordinary employment |
| Ex gratia bonus for ordinary-hours work | Yes | The label does not matter; the work does |
| Return-to-work bonus after parental leave | Yes | Connected to ordinary employment |
| Bonus solely for overtime-only work | No | Work was entirely outside ordinary hours |
The ATO publishes a detailed list of payments that are OTE, and the pattern is consistent: if the payment is connected with ordinary hours, super is due. The label your employer puts on the payment does not decide it. Calling a bonus “ex gratia” or “discretionary” does not remove the super obligation if the bonus rewards ordinary-hours work.
How much super should you get on a bonus?
The calculation is simple: bonus amount multiplied by 12%. The super is paid on top of the bonus, not taken out of it — you keep the full bonus (less tax) and your employer adds the super separately.
| Bonus amount | Super at 12% | Tax on bonus* | Bonus kept after tax |
|---|---|---|---|
| $1,000 | $120 | $320 | $680 |
| $2,500 | $300 | $800 | $1,700 |
| $5,000 | $600 | $1,600 | $3,400 |
| $10,000 | $1,200 | $3,200 | $6,800 |
| $20,000 | $2,400 | $6,400 | $13,600 |
| $50,000 | $6,000 | $17,050 | $32,950 |
*Tax on the bonus assumes a marginal rate of 32% (30% income tax plus 2% Medicare levy), which applies to incomes between $45,001 and $135,000. The $50,000 bonus straddles the $135,000 threshold for a worker on $100,000, so part of it is taxed at 37% plus Medicare — hence the higher figure. Your actual tax depends on your total income for the year.
A worked example: imagine you earn an $80,000 salary and receive a $10,000 annual performance bonus. Your employer owes 12% super on your salary — $9,600 a year — plus 12% on the bonus — another $1,200. Your total super for the year is $10,800, and your total package is $100,800. The bonus itself is taxed as ordinary income, so at a 32% marginal rate you keep $6,800 of the $10,000 in cash and $1,200 lands in your super fund.
The maximum super contribution base
There is a ceiling. Employers are not required to pay super on earnings above the maximum super contribution base (MCB). For 2025–26 the MCB is $62,500 per quarter — $250,000 a year. If your salary plus bonuses take your ordinary time earnings above that level in a quarter, your employer can stop paying SG on the amount above the cap.
For most workers this never matters. It only bites for very high earners: someone on a $240,000 salary who receives a $20,000 bonus has $260,000 of OTE for the year, so super is only compulsory on the first $250,000. The remaining $10,000 of earnings attracts no compulsory super, although the employer may still choose to pay it. Note that the cap applies per quarter, not per year, so a large bonus paid in a single quarter can push you over the quarterly cap even if your annual earnings are below $250,000.
The one exception: overtime-only bonuses
A bonus escapes super only if it relates entirely to work performed outside your ordinary hours. The classic example is a bonus paid because you worked on a project that was done wholly in overtime. If every hour of that project was overtime, the bonus is not OTE and no super is due.
But the exception is narrow. If you worked on the project during both ordinary hours and overtime, the bonus is OTE and super applies to the whole amount — the ATO does not allow the payment to be split. And ordinary overtime pay itself is never OTE: the extra hours are paid at penalty rates without super, which is why a bonus tied only to those hours is treated the same way. If your employer claims a bonus is overtime-only, ask them to explain exactly which work it relates to. Most performance, sales and annual bonuses relate to ordinary-hours work and the exception does not apply.
What changes from 1 July 2026: payday super
From 1 July 2026, the quarterly super payment system is replaced by payday super. Employers must pay SG contributions at the same time as salary and wages, with the money reaching your fund within seven business days of payday. A bonus paid on a Friday should therefore have its super in your fund within seven business days — not at the end of the quarter.
The same reform replaces OTE with a broader concept called “qualifying earnings” as the base for super guarantee calculations. Qualifying earnings include OTE plus other payments such as commissions and eligible salary sacrifice amounts. For bonuses, the practical effect is small — most bonuses were already OTE — but the timing change is significant: you will be able to see the super on a bonus in your fund within days of the payment, which makes it much easier to check.
Tax on bonuses: what to expect in your pay
A bonus is taxed as ordinary income, and your employer withholds PAYG tax from it just like wages. Because a bonus usually lands in a single pay period, the withholding can look high: if the bonus is paid as a lump sum, your employer uses the ATO’s separate tax table for back payments, commissions and similar lump-sum amounts, which can withhold more than your final tax bill. That over-withholding is not lost — it comes back to you as a refund when you lodge your tax return, because your actual tax is worked out on your total income for the year.
One option worth considering is salary sacrificing your bonus into super. If you ask your employer to pay some or all of the bonus directly into your super fund, it counts as a concessional contribution and is taxed at 15% inside the fund instead of your marginal rate. On a $10,000 bonus for someone on a 32% marginal rate, that saves roughly $1,700 in tax — but the money is locked in super until you meet a condition of release. The concessional contributions cap is $30,000 a year in 2025–26, including your employer’s SG contributions, so check how much cap room you have first.
What to do if super was not paid on your bonus
If you think your employer missed super on a bonus, work through these steps:
- Check your payslip and super fund: super on a bonus should appear in your fund shortly after the payment — and from 1 July 2026, within seven business days of payday. Check the contribution date and amount against 12% of the bonus.
- Ask your employer or payroll: sometimes the super is paid but allocated to a different quarter, or the bonus was classified as overtime-only. Ask for the reasoning in writing.
- Check the quarterly cap: if your earnings for the quarter exceeded $62,500, the employer may legitimately have stopped paying SG above that amount.
- Contact the ATO: if the employer cannot explain the shortfall, you can lodge an unpaid super enquiry with the ATO. The ATO can investigate and recover unpaid super guarantee, plus interest and penalties, through the super guarantee charge.
Keep your payslips and any bonus letters or emails. The ATO’s Single Touch Payroll data gives it a record of what you were paid, but your own documents make a complaint much faster to resolve.
Frequently asked questions
Do employers have to pay super on a Christmas bonus?
Yes, in most cases. A Christmas bonus rewards the year’s ordinary-hours work, so it counts as ordinary time earnings and attracts the 12% super guarantee. A $2,000 Christmas bonus means $240 in super.
Do you get super on a sign-on bonus?
Yes. A sign-on bonus is part of the employment package for ordinary-hours work, so it is OTE and super is payable at 12% on top of the bonus amount.
Is super paid on commission?
Yes. Commission payments are classified as ordinary time earnings and attract super contributions at 12%.
What if my bonus was for overtime work only?
If the bonus relates solely to work performed entirely outside your ordinary hours, no super is due on it. If the work was done during both ordinary hours and overtime, the whole bonus is OTE and super applies.
Is super paid on a bonus above the $250,000 cap?
Not compulsorily. The maximum super contribution base for 2025–26 is $62,500 per quarter ($250,000 a year). Earnings above that in a quarter do not attract compulsory SG, though your employer may pay it voluntarily.
When will I see super on my bonus under payday super?
From 1 July 2026, your employer must pay SG at the same time as wages, and the money must reach your fund within seven business days of the payday on which the bonus was paid.
Conclusion
Super is payable on almost every bonus an Australian worker receives. The test is simple: if the bonus relates to your ordinary hours, your employer owes 12% super on top of it — $600 on a $5,000 bonus, $1,200 on a $10,000 bonus. Only a bonus tied exclusively to overtime-only work escapes the requirement, and that exception is narrow. From 1 July 2026, payday super means the money should land in your fund within seven business days of the bonus being paid, so checking is easier than ever.
If a bonus is coming your way, check your fund after payday and confirm the 12% is there. And if you are weighing up whether to take a bonus in cash or salary sacrifice it into super, run the numbers with our super calculator and our bonus tax calculator — the right choice can be worth thousands of dollars over a working life.
