What are my obligations regarding superannuation contributions for my employees?

In Australia, as an employer, you’re responsible for contributing to your employees’ retirement savings through superannuation. This contribution is mandated by the Super Guarantee (SG) and is a crucial part of an employee’s financial security after retirement. Let’s delve into what you need to know about your SG obligations.

Who is Eligible for Superannuation Contributions?

  • Employees over 18 years of age.
  • Employees under 18 working more than 30 hours a week.

How Much Superannuation Needs to be Paid?

The current minimum SG contribution rate is 11% of an employee’s ordinary time earnings (OTE). This rate is gradually increasing and will reach 12% by 2025. However, an award rate or employment agreement might specify a higher contribution rate, so be sure to check those documents.

Key Points to Remember:

  • Timeliness: You are required to pay super contributions for eligible employees at least quarterly by the designated due dates. More frequent contributions are allowed, but the total SG for the quarter must be paid by the due date.
  • Record Keeping: Maintaining proper records of your SG payments is essential. These records should include employee details, contribution amounts, and dates of payments.
  • Employee Choice: Employees have the right to choose their preferred super fund. If an employee doesn’t nominate a fund, you are required to pay into their default fund within 28 days of their employment commencement.
  • Reporting: You might need to report your SG obligations through Single Touch Payroll (STP) as mandated by the Australian Taxation Office (ATO).

Resources for Employers:

For a comprehensive understanding of your SG obligations and the latest rates, refer to the following resources:

By fulfilling your SG obligations, you contribute to your employees’ financial well-being and ensure compliance with Australian regulations.


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