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Super guarantee contributions

 

The super guarantee (SG) was introduced by the Australian Government to ensure all working Australians save for their retirement. The initiative was established to address the issue of an aging population and the potential strain on the government’s pension system.

The super guarantee requires all employers to contribute a percentage of their employee’s earnings into a superannuation fund.

Your responsibilities

As an employer, you are responsible for paying your staff super guarantee contributions.

How much to pay?

You must pay a minimum of 11% of an employee’s ordinary time earnings (OTE). If your employees are covered by an award or employment agreement which specifies a higher super contribution than 11%, you must pay the higher amount.

You are required to make SG payments at least quarterly, although you can pay them monthly or fortnightly if that is easier.

Super guarantee rate increases

The super guarantee is gradually increasing until it reaches 12% on 1 July 2025.

Financial Year(s) Super Guarantee rate
2023-24 11%
2024-25 11.5%
2025-26 and beyond 12%

Use the ATO super guarantee charge statement and calculator tool to work out how much SG you need to pay your staff.

Who is eligible to receive super guarantee contributions?

Generally, all employees are entitled to SG. It applies to full-time, part-time and casual workers. Some contractors and temporary residents are also entitled to SG payments.

The ATO’s super guarantee eligibility decision tool can assist you in working out who of your staff are eligible.

 

When are employers not required to pay SG?

Some types of workers and work do not require superannuation to be paid. You do not need to pay SG to an employee who is under 18 years of age and working less that 30 hours per week.

Employers are not required to pay super for:

 

Paying super if you are self-employed as a sole trader or partner

You can choose whether to pay super to yourself. There are two forms of payments you can make. Find out more about super for the self employed.

Tax deductions

Tax deductions can be claimed on super payments made to your employees in the financial year you make them. These are only considered paid when your super fund receives them, so be sure to make them well in advance of 30 June. 

WE’RE HERE TO HELP. So, get in touch.

If you have any questions, please call our Employer Services Team on 1300 943 171 or request a call back from a business specialist.