Superannuation Guarantee has increased to 9.25%.
As detailed in our May 2013 newsletter the super guarantee (SG) rate increases to 12% over seven years, as shown in the table below.
| 1 July 2003 - 30 June 2013 | 9% |
| 1 July 2013 - 30 June 2014 | 9.25% |
| 1 July 2014 - 30 June 2015 | 9.5% |
| 1 July 2015 - 30 June 2016 | 10% |
| 1 July 2016 - 30 June 2017 | 10.5% |
| 1 July 2017 - 30 June 2018 | 11% |
| 1 July 2018 - 30 June 2019 | 11.5% |
| 1 July 2019 and onwards | 12% |
What employers need to do:
1. Make Superannuation Guarantee payments for eligible staff
You need to pay SG contributions for employees, this includes those on leave, such as:
- Paid sick leave
- Long service leave
- Annual leave
- Workers’ compensation (in some circumstances).
Under the legislation, you don’t have to pay SG contributions for employees who are:
- Earning less than $450 in a calendar month
- Under 18 years of age and working less than 30 hours a week.
Employer contributions are also generally not required when an employee is away from work and not receiving pay, such as on parental leave or approved leave without pay.
2. How to calculate Superannuation Guarantee
Use ordinary time earnings to calculate SG. Employees with straightforward terms and conditions of employment, working out ordinary time earnings should be simple. But working out ordinary time earnings is more difficult for complex salary packages – with loadings, allowances or commissions for example.
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For details of the payments that count as salary or wages and ordinary time earnings see the following ATO checklist click here
3. Pay on time
Payments need to be made by the 28th day following the quarter (ie September quarter needs to be paid by 28 October). Payments after these dates are not tax deductible, and if paid late you will also need to complete the superannuation guarantee charge forms.
| Period | SG tax deductibility deadline |
| 1 July - 30 September | 28 October |
| 1 October - 31 December | 28 January |
| 1 January - 31 March | 28 April |
| 1 April - 30 June | 28 July |
4. Allow your staff to choose their own super fund and select a default fund
Generally, your staff can choose their super fund. If they don’t make a choice, you need to choose a fund that you can pay super into on their behalf. This is called your default fund.