Superannuation Guarantee - Are you complying?

Last updated June 2011

Employers should now be aware that they are required to make quarterly superannuation contributions for their employees (see below for quarterly dates).

How much to pay and when to pay

You must pay a minimum of 9% of each eligible employee's ordinary time earnings each quarter.

Ordinary Time Earnings

Ordinary time earnings (OTE) is usually usually the amount your employee earns for their ordinary hours of work. It includes things like commissions, shift-loadings and allowances, but doesn't include overtime payments. What is included in ‘ordinary times earnings’ is explained in the following link: Ordinary time earnings

How much to pay

Super is calculated quarterly - that is, every three months. For each of your employees:

•  Multiply their ordinary time earnings for the quarter by 9%

• Pay this amount to a complying super fund or retirement savings account by the cut off date

If you back-pay salary or wages to a former employee you have to pay super contributions on that back pay.

You can use the Superannuation guarantee contributions calculator to work out how much super you must contribute for your eligible workers.

When to pay

You have to pay super guarantee contributions for each eligible employee at least four times a year. Payments must be made by the quarterly cut off dates.

Quarter	Period	Payment Cut Off 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

Claiming a tax deduction:

You can claim a full tax deduction for super payments you make for employees under 75 years old by the cut-off date.

Penalties

If you haven't paid the minimum amount to the correct fund on time, you have to lodge a Superannuation guarantee charge statement and pay the superannuation guarantee charge (SGC). The SGC is not tax deductible and neither are some late payments.

Pending Changes

The Government is considering proposals to make directors personally liable for any unpaid superannuation amounts.

In the 2010 federal election and the 2011-12 Federal Budget, the government announced that employees will receive information on their pay slips about the amount of super actually paid into their super fund account. Employees will also receive a quarterly notification from their super fund if regular super payments cease.

The intent of these measures is to help employees keep track of their employer's contributions.

If passed by parliament, this new measure will take effect from 1 July 2012.