Your obligations

As an employer, you must pay compulsory super contributions into a complying superannuation fund for all of your eligible employees. This is known as the Superannuation Guarantee.

This page summarises some of your obligations under the Superannuation Guarantee.  You can obtain more information about the Superannuation Guarantee from the Australian Taxation Office website or by calling them on 13 10 20.

Your employees may also have the right to choose the superannuation fund that receives their Superannuation Guarantee contributions. This is known as Choice of Superannuation Fund.

Superannuation Guarantee Obligations

The minimum Superannuation Guarantee (SG) rate is currently nine percent (9%) of each eligible employee’s gross earnings.  Awards and Industrial Agreements can stipulate a higher employer contribution rate.

You must contribute to an employee’s superannuation until the employee reaches the age of 70.  Once an employee reaches 70 years, you are no longer required to contribute to super unless those contributions are mandated.

Exceptions

You are not required to make superannuation contributions for employees who are:

• paid less than $450 in a calendar month;
• aged 70 years and over (unless contributions are mandated);
• under 18 years of age and working 30 hours or less, per week;
• non-residents being paid for work done outside Australia;
• employees covered by Bilateral Superannuation Agreements with other countries;
• foreign executives who hold certain visas or entry permits under the Migration (1993) Regulations; and
• paid to do work of a domestic or private nature for not more than 30 hours a week

A common misconception is that contractors are not covered by the Superannuation Guarantee.  If you have engaged a person under a contract that is mainly for their labour, you will be required to make Superannuation Guarantee contributions for at least the labour portion of their contract.  Contact the ATO on 13 10 20 if you are unsure.

Employee contributions

If you deduct personal contributions from an employee’s after-tax wages, legislation requires that these monies be paid into a complying fund no later than the 28th day of the following month.  Fines may apply if you fail to do this.

Employee Tax File Numbers (TFN)

It is compulsory for employers to notify super funds of their employees Tax File Number (TFN) and must do so within 14 days of the TFN being quoted to the employer.

Reporting

If your employees are covered under a registered award or agreement that mandates reporting as one of the conditions, then you are required to report your contributions to them.  For all other employees you are no longer required to report your contributions to them.