Superannuation
Overview of Superannuation
Superannuation, or "super," is Australia's mandatory retirement savings system. As an employer, you are required to contribute a portion of your employees' earnings to a superannuation fund to ensure they have savings for retirement.
Employer Obligations
Superannuation Guarantee (SG)
You must contribute a minimum percentage of each employee's ordinary time earnings (OTE) to a superannuation fund. This percentage is known as the Superannuation Guarantee (SG) rate, which is set by the Australian government.
Contribution Rate
- Current SG Rate: 10.5%
- Future Increases: The SG rate will gradually increase until it reaches 12%.
Super contributions must be made at least quarterly by the following due dates:
- 1st Quarter (July – September): Due by 28th October
- 2nd Quarter (October – December): Due by 28th January
- 3rd Quarter (January – March): Due by 28th April
- 4th Quarter (April – June): Due by 28th July
Employees generally have the right to choose their superannuation fund. You must provide a Standard Choice Form within 28 days of an employee starting work. If an employee does not choose a fund, contributions must be paid into a default MySuper product.
Reporting and Record-Keeping
You must keep records of:
- The amount of super contributions made
- The dates contributions were made
- The name and number of the superannuation fund to which contributions were made
- Employees’ written choice of superannuation fund, if provided
SuperStream is the electronic system for paying super contributions. It ensures payments and associated data are transmitted consistently and efficiently.
Compliance and Penalties
Late Payments
If you fail to pay super contributions by the quarterly due dates, you must pay the Superannuation Guarantee Charge (SGC), which includes:
- The shortfall amount
- Interest (currently 10%)
- An administration fee
Any missed or late payments must be reported and rectified through the Australian Taxation Office (ATO).
Book an appointment with Befinancial Accounting.
Contact - 1300 699 161Email - info@befinancial.com.au
32 Main Rd Bakery Hill, VIC 3350