As an employer, you have an obligation to pay your employee's super, which is generally a percentage of their Ordinary Time Earnings (OTE). The minimum rate that you need to pay your eligible employees is the Superannuation Guarantee (SG).
The SG rate is 9.5% per annum at the moment and is planned to gradually increase to 12%.
You can calculate your SG payments with the ATO’s employee superannuation guarantee calculator tool.
Employees’ eligibility for Superannuation Guarantee (SG)
Generally, you have to pay super for any employee who is 18 years or older and for who you pay $450 or more (before tax) in salary or wages in a month.
You’ll have to pay super for an employee who’s under 18 if you pay them $450 or more (before tax) in salary or wages in a month, and they work for more than 30 hours in a week. This applies whether the employee works full time, part time or as a casual.
Employer super obligations
As an employer you need to make super payments on behalf of all of your eligible employees. These payments are in addition to your employees’ salaries and wages.
Legislation requires you to:
- pay superannuation for your eligible employees
- contribute to the correct super funds
- pay contributions by the cut-off date each quarter
- provide your employees’ tax file number to QSuper.
The Superannuation Guarantee (Administration) Act 1992 requires employers to make SG contributions on (at least) a quarterly basis. If you don’t, you may incur a penalty. Find out more on the ATO website.