With great power comes great (super contribution) responsibility!
As an employer, you are required to make contributions to your employees’ super funds. Let’s get into it.
✔️ You need to make super contributions for all eligible employees. That means anybody working for you full time, part time or on a casual basis.
❌ You don’t need to make contributions for anyone under the age of 18 and working less than 30 hours a week.
The current contribution rate is 11% of an employee’s earnings base . Word on the street is there will be increases of 0.5% every year until 2025 when the rate reaches 12%.
Pencil these quarterly due dates into your diary:
For the quarter ending 30 September: By 28 October
For the quarter ending 31 December: By 28 January
For the quarter ending 31 March: By 28 April
For the quarter ending 30 June: By 28 July
In case you didn’t already know, when a new employee joins your company, you must provide them with the ATO’s Superannuation Standard Choice form (or your own equivalent) within 28 days.
If your new employee doesn’t fill out the form, they're automatically linked or 'stapled' to the super fund they're already in (if they already have one). As their employer, it's important that you check with the ATO whether your new employee has a stapled fund and if they do, make contributions into that same fund, not your default fund.
If they do fill out the form and choose a different super fund, including your default fund, you should pay their contributions into that fund instead of their stapled fund.
Need help with something else? Contact us! Or if you’re looking for specific advice, we recommend you speak to a lawyer or accountant that specialises in employment law / industrial awards.
Page last updated 23 November 2023