Who is eligible for SG payments?
Most of your employees should be covered by SG legislation. Generally, employees who are paid $450 or more (before tax) in a calendar month and work on a full-time, part-time, or casual basis should receive super contributions.
You need to pay SG contributions for employees who are at work or on leave such as:
- Paid sick leave
- Long service leave
- Annual leave
- Workers’ compensation (in some circumstances).
Under the legislation, you don’t have to pay SG contributions for employees who are:
- Earning less than $450 in a calendar month
- Under 18 years of age and working less than 30 hours a week.
- Away from work and not receiving pay, such as on parental leave or approved leave without pay.
How much super do you need to pay?
As an employer, you must pay a minimum of 10% of each eligible employee's ordinary time earnings each quarter. If your employees are covered by an award or employment agreement which specifies a higher super contribution than 10%, you must pay that higher amount. For employees who reside in Norfolk Island, and where the work is performed on Norfolk Island, the Norfolk Island transitional SG rates apply. Please visit the ATO website for more information.
Ordinary time earnings (OTE) are usually the amount your employee earns for their ordinary hours of work. It includes things like commissions, shift-loadings and allowances, and generally does not include overtime payments.
Super Guarantee rate increase
The SG rate increased to 10% on 1 July 2021, and will continue to increase each year until it reaches 12% on 1 July 2025.
|1 July 2016||9.5%|
|1 July 2017||9.5%|
|1 July 2018||9.5%|
|1 July 2019||9.5%|
|1 July 2020||9.5%|
|1 July 2021||10%|
|1 July 2022||10.5%|
|1 July 2023||11%|
|1 July 2024||11.5%|
|1 July 2025||12%|
Contributions must be paid on a quarterly basis. However, you can also choose to pay monthly or fortnightly. Once you've decided how you're going to pay your employees' super, then all you need to do is ensure you meet the payment deadlines.