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The rate of compulsory super that employers pay workers rises to 10% from 1 July 2021.
At QSuper, we are committed to making it easy for employers to meet their superannuation obligations by keeping them up to date on the latest news that may affect them.
Helping you understand how to meet your superannuation requirements means you can get on with running your business.
The Superannuation Guarantee (SG) is the minimum amount that you must pay into an eligible employee’s super fund.
As of 1 July 2021, the SG will rise from 9.5% to 10% of an eligible employee’s ordinary time earnings (OTE). OTE is generally what employees earn for their ordinary hours of work, including commissions, shift loadings and allowances, but not overtime payments.
A number of Australian Government superannuation reforms are also proposed to be introduced from 1 July 2021,¹ including stapling and the YourSuper comparison tool.
According to the Australian Taxation Office, employers must pay the SG at least four times a year, by the quarterly due dates.
Employers must pay and report super electronically in a standard format, ensuring they meet SuperStream requirements, and your super payments must go to a complying super fund.
If you don’t pay the SG on time, you may have to pay the super guarantee charge.
Under the current legislated timetable, the SG rate rises to 10% from 1 July 2021 and then incrementally by 0.5% each financial year to 12% by 1 July 2025.
1 July 2021
1 July 2022
1 July 2023
1 July 2024
1 July 2025
Make sure your business can make the changes you need to pay your super obligations.
Checking with your payroll provider on making the changes and if there are any costs.
If you have a Human Resources Information System (HRIS), are there any changes needed through this platform that you need to allow time for?
Identifying any key employee documents that may need to be updated.
If your question is not answered below, please feel free to contact us.
Employers need to make SG contributions at least four times a year (quarterly), and some super funds and industry awards require you to pay super more frequently.
Find out more.
Yes, under the legislation, you do need to pay SG contributions for casual eligible employees.
The Australian Government has not changed the legislation around SG contributions on paid parental leave, which means employers do not have to pay SG contributions for employees who are away from work and not receiving pay. In the case of parental leave, although you still pay your employee the national minimum wage for 18 weeks while they're on Centrelink's paid parental leave, you don't have to make SG contributions.
If you offer additional paid parental leave, you may wish to check with the ATO about whether you need to pay SG contributions, as it can depend on your award, employee agreement/contract, or super fund rules.
No, you do not need to pay super on overtime hours, even if the overtime payment is regular, frequent, or bundled into the employee's total salary package.
However, if you can't identify the exact amount of overtime, then you need to pay SG contributions on all the hours the employee worked that day.
Yes, if you are paying a bonus for work an employee did during their normal hours of work, you need to make SG contributions on the bonus amount.
However, if the bonus is being paid for work done during overtime hours, you don't need to pay SG contributions on the bonus.
No, as long service leave is not counted as income, you don't need to pay SG contributions on the long service leave payments.
Contact our Employer Solutions team
1. As at June 2021 these changes have not yet been passed by Parliament
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