Here are some important things you need to know when it comes to super.
Superannuation Guarantee (SG) legislation requires all employers to make super contributions for employees who:
- work on a casual basis, part time or full time
- are aged 18 years and over, or if under the age of 18 are working more than 30 hours per week
As an employer, you must pay SG contributions for employees into a super fund by the quarterly due dates:
Cut-off dates for employer contributions
|1 July – 30 September||28 October|
|1 October – 31 December||28 January|
|1 January – 31 March||28 April|
|1 April – 30 June||28 July|
If an employee’s Ordinary Time Earnings for a quarter is greater than the Maximum Contribution Base, the employer only needs to base the 11% contribution on the Maximum Contribution Base. You need to pay a minimum of 11% of each eligible employee’s Ordinary Time Earnings. This usually means the amount they earn for their ordinary hours of work up to the Maximum Contribution Base for a quarter.
For more information on Ordinary Time Earnings, visit the Australia Taxation Office website.
The SG contribution rate will then increase gradually in successive years until it reaches 12% on 1 July 2025.
|2025/26 and beyond||12%|
If your employees are paid under an award you may also be required to contribute superannuation in accordance with any additional requirements stated in the award.
What happens if contributions are overdue?
If you haven’t paid the minimum amount or missed the due date, you have to lodge a Superannuation guarantee charge statement with the Australian Tax Office and pay the superannuation guarantee charge (SGC). The SGC is not tax deductible and neither are some late payments.