What you need to know about super payments

Pay the right amount at the right time to keep your employees’ super savings on track.
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Who to pay super for?

You’re generally required to pay super for employees who are:

  • employed on a full-time, part-time or casual basis (even if they’re only working in Australia temporarily)
  • 18 and over
  • under 18 but working more than 30 hours per week

You can use ATO eligibility tool to work out if your employee is eligible for super guarantee (SG) contributions.


How much you need to pay?

You must pay a minimum of 11.5% of your employees' ordinary-time earnings into a super fund for them, on top of their regular salary. This is called the super guarantee. 


What are ordinary-time earnings?

The salary or wages you pay an employee for their usual hours of work before any tax is paid (also known as their gross salary). This includes over-award payments, bonuses, shift allowances, commissions, and most types of paid leave. Ordinary-time earnings don't include any overtime. Find out more at the ATO website.

Note: If you're a Tasmanian State Government employer, what's included as part of an employee's ordinary-time earnings is different. You should use the definition of salary as defined under the Public Sector Superannuation Reform Act 2016 (section 4).

Here's how it works

You pay Hannah a salary of $5,000 each month before tax.

As Hannah's employer, you need to pay $575 (11.5%) each month as an SG contribution into the super fund of her choice..

Tip: you may need to pay more than 11.5%, depending on the award or industrial agreement that applies to your business. You can check at the Fair Work website.

More about your super payment obligations

Most employers need to pay SG contributions by the 28th of the month following the end of each quarter. You may need to pay more regularly depending on your employee's terms of employment or industrial award.

Financial year quarters Payment period ATO legislative due date SG statement lodgement and SG charge payment deadline.

Financial year quarters     Payment period   ATO legislative due date   SG statement lodgement and SG charge payment deadline 
 Quarter 1  1 July to 30 September   28 October  28 November
 Quarter 2  1 October to 31 December  28 January   28 February
 Quarter 3  1 January to 31 March  28 April  28 May
 Quarter 4  1 April to 30 June  28 July  28 August 

If your employee has requested extra super contributions be paid from their after-tax pay, you need to pay these contributions into their super no later than the 28th day of the following month.

If you don't make contributions at least quarterly, you may have to pay a SG charge to the ATO on top of any unpaid contributions. The SG charge includes an extra administration fee and interest and isn't tax-deductible.
 

Most employees can choose which super fund they want their super paid into. As an employer, you have an obligation to let your employees nominate their super fund of choice.

1. Check if your employee is eligible to choose their own super fund

The relevant industrial award or agreement for your employee will determine whether they’re eligible to choose a super fund.
If you don’t know which award or industrial agreement applies to your employees, visit the Fair Work Ombudsman website.

2. Give your employee a standard choice form

If your employee is eligible to choose a super fund, you need to give them a Standard choice form within 28 days from the date they start work with you.

Your employee can:

  • complete and return the form with details of their chosen super fund or
  • give you details of the super account they want their contributions paid into or
  • do nothing, in which case you’ll need to pay their super into your default fund

3. Act on your employee's choice

If your employee gives you details of their super fund, and it meets the choice of fund rules, you have two months to start paying their super contributions into their chosen fund.

If your new employee doesn't choose an eligible fund, you must search ATO online services to see if your new employee has an existing super fund, known as a ‘stapled super fund’. If they do, you must pay SG contributions into that fund. 

This step can only occur after your employee has commenced working for you and you've submitted a Tax file number declaration form or Single Touch Payroll pay event linking them to you.

If your employee doesn’t choose a fund and your search of ATO online services shows they don’t have an existing super fund, you pay SG contributions into your default MySuper fund. 

Download the Standard choice form for your new employees

Under the government’s SuperStream legislation, you can only send data and make payments electronically, using approved options. You can’t pay by cheque or send contributions breakdowns by post or email.

There are many ATO-compliant options to enable you to make super contributions for your employees, such as using our clearing house solution, QuickSuper.1

If you’re unsure get in touch with your Employer Relationship Manger or call us on 1800 005 166.

Putting the right super info on payslips

Your employee payslips must include:

  • the amount of contributions made during the pay period (or the amount of contributions that are due to be made)
  • the name of the super fund that the contributions were paid into
 

If you have authorised contributions and paid by EFT through our clearing house, you can’t cancel the payment once it’s been submitted. 

If you need help, give us a call on 1800 005 166.

 

How to claim a tax deduction

  1. Submit a notice of intent. You can do this:

    a. in Member Online, select 'Contributions' and 'Claim tax deductions'

    b. by completing the Notice of intent to claim or vary a deduction for personal super contributions form

    c. by calling us on 1800 006 166

  2. Once you submit your claim, we’ll send you an acknowledgement that we’ve received your intent to claim and confirm the amount.

    You must receive this acknowledgement from us before claiming the deduction on your tax return.

  3. Submit your tax return. You’ll need to state the amount you want to claim as a tax deduction in the supplementary section of your tax return.

Partner with us

Make the switch today and partner with CareSuper for a simple super solution tailored for your business. Give your employees confidence in their financial future and ensure a brighter, more secure tomorrow with CareSuper.

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QuickSuper is issued by Westpac Banking Corporation (ABN 33 007 457 141, AFSL 233714). An offer to issue this product may be made to you by Westpac, subject to completion of the application process. The Product Disclosure Statement (PDS) for QuickSuper is available on the Westpac website. You should consider the PDS before deciding to accept any offer made by Westpac to issue the product.