Superannuation
Super basics for Employers
If your business employs staff, you are required to pay superannuation on their behalf to the superannuation fund of their choice.
Who’s eligible?
- Employees who earn at least $450 per month (before tax) and are aged over 18 and under 70*
- Employees under the age of 18 who more than 30 hours a week
*Employers are not required to make SG contributions for individuals once they reach 70 years of age. However, the Government plans to abolish this age limit.
**The 9% Superannuation Guarantee Contribution (SGC) is the minimum requirement established by law. Some Awards, Industrial Agreements or employment contracts may establish a higher contribution level than the SGC, but they cannot offer less.
How much to pay and when?
You need to pay a minimum of 9% of your employees' ordinary time earnings into their dedicated super fund account. The ordinary-time earnings are a component of the gross salary and include ordinary-time pay, shift allowances, commissions and some bonuses but not usually overtime payments.
You must make the payments at least four times a year, 28 days after the end of each quarter. It is important to pay your employees' super on time so you can claim that amount as a tax deduction - late payments are not eligible.
| Quarter | Due Date |
| 1 July – 30 September | 28 October |
| 1 October – 31 December | 28 January |
| 1 January – 31 March | 28 April |
| 1 April – 30 June | 28 July |
What if you haven’t paid your employee’s super by the due date?
You will have to lodge a Superannuation Guarantee Charge Statement to the ATO to pay for the super amount you owe, plus interest, plus an administration fee.
There are penalties that apply for failure to pay employees’ super.
Last updated on 14th December 2011
