Most employers must make Superannuation Guarantee (SG) contributions on a quarterly basis. Employers who are currently making contributions more regularly, may continue to do so.
This means that employers must:
- Calculate an additional amount equal to 9% of each of their eligible employees' gross ordinary time earnings.
- Generally eligible employees are those paid at least $450 a month.
- From 1 July 2008, contributions will be calculated using Average Weekly Ordinary Time Earnings (AWOTE).
- Pay this amount to a complying superannuation provider at least once every quarter; and
- ensure they keep a record of all contributions made.
Note - Superannuation Guarantee obligations cease when an employee reaches age 70. If required by an industrial award, payments to these employees can be accepted by super funds and used as tax deductions.
Employers must follow the following critical dates:
| 1 July - 30 September |
28 October |
14 November |
| 1 October - 31 December |
28 January |
14 February |
| 1 January - 31 March |
28 April |
14 May |
| 1 April - 30 June |
28 July |
14 August |
The ATO has also introduced penalties for employers who do not pay by the cut off date for each quarter. It is essential that employers pay SG contributions by the cut off date and keep records of all contributions made.
Employers may choose to report their superannuation contributions to employees, but are no longer required to do so by tax law. However, employers covered under Australian workplace legislation, awards or agreements that require them to report superannuation contributions on pay slips will still be obligated to report to their employees.
Superannuation funds will continue to issue annual member contribution statements.
For more information on penalties or Quarterly SG in general, please visit the Tax Office superannuation website at www.ato.gov.au/super.
