Super’s how Australians save for retirement. As an employer, you need to pay 9.5% of eligible employees’ normal pay into their super fund each quarter. You may need to pay more than this rate if required by an award or industrial agreement.
The super guarantee (SG) is the amount of super an employer must contribute on behalf of their eligible employees. You can generally claim a tax deduction for super contributions.
|Quarter||Period||Payment due date|
|1||1 July - 30 September||28 October|
|2||1 October - 31 December||28 January|
|3||1 January - 31 March||28 April|
|4||1 April - 30 June||28 July|
You must pay contributions for each quarter to the employee’s fund by the 28th of the month following the end of each quarter. You might have to pay more regularly than quarterly if your employee’s terms of employment or industrial award conditions say you need to.
If you make personal (after-tax) contributions on behalf of an employee, you should pay as regularly as their terms of employment or award says you need to.
To help grow Australian workers' retirement savings, the compulsory SG rate will gradually increase to 12%. Until the 2020-21 financial year the SG rate will remain at 9.5%, then will gradually increase until it reaches 12% by 1 July 2025 as shown in the table below.
|Financial year||SG rate|
If you don't pay the minimum amount into the correct fund by the due date, you'll need to follow the guidance provided by the Australian Taxation Office (ATO) regarding missed and late payments.
Generally, you have to pay super for an employee if they're over 18 and you pay them $450 or more (before-tax) in salary or wages in a calendar month. It doesn't matter whether the employee is full-time, part-time or casual. You may also have to pay super for contractors.
If an employee is under 18, they must also work at least 30 hours each week to be entitled to SG.
You can use the ATO’s Super guarantee eligibility decision tool to work out if you need to make super contributions for your workers.
If you're a sole trader or a partner in a partnership, you don't have to pay super for yourself, but you can make super contributions to help you save for your retirement. Call us on 1800 005 166 and we can walk you through your options.
If you're NOT a Tasmanian State Government employer
Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including:
Overtime payments, for example, aren’t usually counted as ordinary time earnings.
The ATO gives a full rundown on ordinary time earnings at ato.gov.au.
If you ARE a Tasmanian State Government employer
What’s included as part of an employee’s ordinary time earnings is different. You should use the definition of salary as defined under the Public Sector Superannuation Reform Act 2016 (section 4).