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Super Guarantee

What do you need to do as an employer?

As an employer, you’re required by law to pay superannuation to eligible staff to help them save for their retirement. But what does that actually entail?

What is the Super Guarantee?

The Superannuation Guarantee (SG) is a compulsory payment by employers into their employees' super.

For the 2021-22 financial year, the payment is set at 10% of the employee’s ordinary time earnings. This is scheduled to increase to 12% by 2025.

Financial Year SG rate
2017 to 2021 9.50%
2021 - 2022 10.00%
2022 - 2023 10.50%
2023 - 2024 11.00%
2024 - 2025 11.50%
2025 - 2026 12.00%

Who do I need to pay super to?

Generally, you have to pay super for any employee who is:

  • Over 18 years of age and earns at least $450 (before tax) from you per calendar month
    Or
  • Under 18 years of age, working at least 30 hours per week and earning at least $450 or more (before tax) in a calendar month.

To work out how much you need to pay, simply multiply your employee’s ordinary time earnings for the payment period by 0.10 (i.e. 10%).

Maximum contributions

There’s a limit to the amount of super that you have to pay for an individual employee. This is known as the maximum contributions base.

For the 2021/22 financial year the maximum contributions base is 10% of a person’s salary up to a maximum salary of $58,920 per quarter ($235,680 a year). If an employee’s ordinary time earnings (OTE) exceeds this maximum, you don’t need to increase their super payments to match it – unless required by an award or agreement.

When do I have to make payments?

You can make your Superannuation Guarantee (SG) payments weekly, fortnightly, monthly or quarterly. By law, you must make these payments at least on a quarterly basis.

The SG quarterly payment dates are:
Financial quarter Due date each year
1 July – 30 September 28 October
1 October – 31 December 28 January
1 January – 31 March 28 April
1 April – 30 June 28 July

Pay on time to claim on tax

Payments made on time (before the ATO SG contributions quarterly deadlines) can be claimed as a tax deduction.

If you don’t meet the quarterly deadlines you will have to provide a statement to the ATO and pay the Super Guarantee Charge. This comprises your super payments, plus interest, plus an admin charge – so try to pay your super on time!

The Superannuation Guarantee Charge is a penalty and therefore is not tax deductible.

Need help?

If you’re not sure whether or not you need to pay super on behalf of an employee, contact the Australian Tax Office on 13 10 20 or visit www.ato.gov.au.

If you’d like to find out more about when and how to pay your Superannuation Guarantee contributions, call our member services team on 1300 65 18 65 or 08 7915 4800 (NT).