Your super-quick guide to the Super Guarantee (SG) system
For most Australian workers, superannuation (or super) is a compulsory means of saving throughout your working life to provide for your retirement.
Your obligations as an employer
How much super must you pay?
As an employer, you’re required to pay compulsory super contributions (also known as SG) of 9.5% for all your eligible employees. Your employees include the staff who work for your business as well as your agency (on-hire) workforce.
You must choose a default fund for your employees
Choosing your default fund is an important decision as it impacts the quality of your employee’s retirement. You must choose a fund that meets the basic requirements of; being a complying fund, offering a MySuper product and having the minimum level of insurance cover.
Who’s eligible for SG contributions?
All employees aged over 18 years who:
Earn $450 or more (before-tax) in a calendar month, and
Work on a full-time, part-time or casual basis.
All employees who are under 18 years who:
Earn $450 or more (before-tax) in a calendar month, and Work 30 hours or more in a week on a full-time, part-time or casual basis.
If a contract is wholly or principally for labour, you are required to pay the contractor SG contributions. A contract can be verbal or in writing and labour can include physical labour and mental or artistic effort.
If you employ temporary Australian residents who meet any of the above conditions you must make super contributions for them.
What payments does SG apply to?
SG contributions apply to:
-Paid sick leave
-Long service leave
When do you have to pay?
You need to pay your SG contributions from the first day an employee starts working for you. SG contributions should be made at least once every quarter. If you don’t meet these deadlines the
ATO will charge you late payment fees. You’ll also be charged fees by the ATO if you don’t pay the correct amount or to the correct fund.
Quarter Period Cut-off date
1 1 Jul – 30 Sept 28 October
2 1 Oct – 31 Dec 28 January
3 1 Jan – 31 Mar 28 April
4 1 Apr – 30 Jun 28 July
How do you make SG contribution payments?
All SG contribution payments must be made electronically in accordance with the government’s SuperStream standard.
Prime Super – we’re here to help
Prime Super is the RCSA’s principal partner and has been providing super solutions to Australian businesses for more than 20 years.
If you’d like more information about superannuation or help with your super obligations, please contact one of your dedicated Prime Super relationship managers.
This information is provided by Prime Super and is general in nature. It does not take account of your personal circumstances. You should obtain personal advice where appropriate. Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723) is the Trustee of Prime Super (ABN 60 562 335 823). A Product Disclosure Statement is available from primesuper.com.au or by calling 1800 675 839.