Super payment rules

Superannuation guarantee payment dates 

Do I need to pay superannuation?

Generally, an employer must pay super for an employee if the employee is over 18 years old. It doesn’t matter if they are full time, part time or casual, or if they are a temporary resident of Australia – they’re still entitled to receive superannuation contributions. If the employee is under 18 years of age, and they do not work more than 30 hours in a week you are not compelled to pay super contributions, however you can pay super to these employees if you wish to, or if payment is required under the terms of a workplace agreement. 

Contractors who earn most of their income by providing a service to your business, might also be eligible for super contributions from you. If they are paid entirely or principally by you for their personal labour and skills, they perform the contract work personally or they’re paid for the hours worked rather than to achieve a result, then they’re considered an employee for super purposes and, as such, entitled to super guarantee contributions under the same rules as employees.

What does Ordinary Time Earnings mean?

The super contribution payment is based on an employee’s ordinary time earnings which is usually the amount an employee earns from their ordinary hours of work. It includes: 

• Commissions
• Certain allowances
• Paid leave
• Shift loadings 

It does not include: 

• Irregular overtime payments
• Performance based bonuses
• Termination payments 
• Fully expended expense allowances, such as car allowances
• Reimbursed expenses
• Benefits subject to fringe benefits tax
• Jury top-up payments
• Parental leave payments
• Annual leave loading
• Accrued annual leave, long service leave and sick leave paid as a termination lump sum
• Redundancy payments
• Gratuities
• Dividends
• Partnership and trust distributions
• Restraint of trade agreement payments
• Payments for domestic or private work under 30 hours a week

Are there exceptions?

The maximum super guarantee amount an employer is required to contribute is the equivalent of 11.5% of $65,070 per quarter (equivalent to $260,280 for the year), which works out to be a contribution of $7,483.05 per quarter.

Are there other types of superannuation payments?

Generally there are two types of payments:

• Compulsory Super Guarantee contributions
  The mandatory contribution you make to your employees’ superfunds set as a percentage of their regular wage.
• Reportable superannuation contributions
  In most cases, the extra voluntary payments made at the request of an employee out of their wage. The most common of these is salary sacrificing.

Employer super calculator

Income (before tax) weekly fortnightly monthly yearly Please enter an income amount Employer super contribution Please enter in the contribution rate. Contribution rate needs to be between 11.5% and 17% Is the employee 18 years old or over?

• Yes
• No

Does your employee work for more than 30 hours in a week?

• Yes
• No

See contribution amount

The super contribution amount is

$475 per month

Need a default fund for your employees? Reset

The super contribution amount is

$475 per month

You can make this contribution, however based on the information you have entered you may not need to make a super contribution for this employee for this period. You can confirm your obligation to pay SG with the ATO.

Need a default fund for your employees? Reset

The employee is not eligible for super because they are paid less than $450 (before tax) per month.

Reset

Employer super calculator

Assumptions/Disclaimer