How super works

Superannuation or ‘super’ is for the most part a compulsory means of saving for retirement.

Super is accumulated and invested during working life and is likely to be one of the largest investments a person will make.

 

Your responsibility

 As an employer, you are required to contribute 9.5% of your eligible employees’ ordinary time earnings (OTE) to super. This contribution is called the Super Guarantee (SG).

OTE is usually the amount your employee earns for their regular hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments.

The current SG rate of 9.5% is scheduled to increase incrementally until it reaches 12% in 2025. To confirm the most up to date rate, please check the ATO's key superannuation rates and thresholds.

 

Payment dates

You must make Superannuation Guarantee (SG) payments by the payment cut-off date each quarter to avoid a government penalty.

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

 

Eligibility

You must make SG contributions where your employee is:

  • aged over 18 years and earns more than $450 (before-tax) in a calendar month, or
  • aged under 18 years, earns more than $450 (before-tax) each calendar month and works more than 30 hours per week on a full-time, part-time or casual basis.

For more information about employers’ super obligations, visit the ATO website at Super for employers.

Employer Guide                    My Local Contact

Want to know more?

Talk to the Prime Super team - call 1800 675 839

Talk to the Prime Super team

Everything you need to know!

Our Employer guide provides you with the key information you need to pay super and comply with government regulations.

Download our Employer Guide