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.
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.
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|
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.