Blog Layout

Superannuation Guarantee Obligations

Kerry Pretlove • August 18, 2020

This blog will focus on the Superannuation Guarantee Obligations - something every employer should understand.

The Super Guarantee is money you pay to a complying super fund for your workers to provide for their retirement. Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay super, on top of their wages. The minimum you must pay is called Super Guarantee (SG).

Did you know…

  • ONLY if you pay your super obligation on time can it be claimed as a tax deduction.
  • The Super Guarantee is currently 9.5% of an employee's ordinary time earnings.
  • Generally, you have to pay super for our employees if they
    • are paid $450 or more, before tax in a calendar month
    • are aged 18 or over or, if under the age of 18, are working more than 30 hours per week.
  • Employers MUST pay super at least four times a year, by the quarterly due dates (28 days after the end of the quarter).
  • Employers MUST pay and report the SG electronically in a standard format, ensuring you meet SuperStream requirements.
  • Employees are entitled to select the (compliant) super fund of their choice into which the employer must make their contributions.
  • All businesses employing staff, must set up a default super fund.
  • If your employee's super fund of choice is not compliant, or they have not advised you of their choice, you are still required to remit their superannuation contributions by the due date. These payments should be made into your default super fund.
  • If you don't pay the super on time, you must complete and lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

Default Superannuation Fund

Before you offer your employees the option to choose a super fund, you must have a fund that you will pay their super into if they can't or don't choose their own fund. This fund is referred to as your default fund.

Your Default Fund must:

  • Be a complying super fund
  • Be registered by the Australian Prudential Regulation Authority (APRA) to offer a MySuper product.

To nominate a super default fund simply contact the fund and complete an application form (this is available to complete online with most funds).

Employers MUST provide employees with a super fund Standard Choice Form (available from West Currie Consultants or the Tax Office) unless they give you the details of their chosen super fund first.

When providing the employee with the Standard Choice form you must complete Section B with your default fund details.

You need to keep a copy of the completed Standard choice form for your own records for five years. You don't need to send a copy to the ATO or your employee's chosen super fund.

PLEASE REMEMBER THAT EMPLOYEE SUPERANNUATION IS NOT A CHOICE BUT A MANDATORY OBLIGATION AS AN EMPLOYER

If you require any assistance or advice don't hesitate to contact one of our team members at West Currie Consultants.

COVID-19 Lockdown Support for Victorians

By Elizabeth West • July 24, 2021
Lockdown Support For Victorians

Economic Response to Coronavirus

By Rebecca West • March 22, 2020
Well what an ever-changing time we live in. Regulations, laws, business lives and stimulus packages all changing daily that complicate and confuse information in relation to the impact of Coronavirus (COVID19)

2019 Federal Budget - Budget or Election Promise?

By Rebecca Heath • April 1, 2019
The Federal Budget - budget or election promise?
More Posts
Share by: