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Super payment rules

Superannuation dates and more

When to pay super?

Each year the dates when super is payable by employers are the same:

  • January 28th
  • April 28th
  • July 28th
  • October 28th

Do I need to pay superannuation?

Generally, an employer must pay super for an employee if:

  1. The employee is 18 years or over, and
  2. You pay them $450 or more (before tax) in regular income per calendar month.

OR 

  1. The employee is less than 18 years of age, and
  2. They work more than 30 hours per week.

The Superannuation Guarantee (SG) must be paid regardless of whether the employee is full time, part time or casual, an Australian resident or here on a work visa.

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 labour (they’re paid principally or wholly 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 superannuation contribution base (income on which employers must pay the Super Guarantee) for the 2017/18 year is $52,760 per quarter (entitlement is assessed quarterly), or the equivalent of $211,040 annually.

The maximum Super Guarantee that an employer is legally required to contribute is the equivalent of 9.5% of a person's salary up to a maximum salary of $52,760 per quarter (equivalent of $211,040 a year). The maximum quarterlySG payment works out to be $5,012.20 per quarter, that is, $20,048.80 for the year.

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
    I
    n 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.

Super Contribution Calculator

Is your employee 18 years of age or over? 
Does your employee work for more than 30 hours in a week?

 

Please note: The answers you get from this tool are based solely on the information you provide. Calculations are only estimates of potential superannuation eligibility and assume no change to hours worked or remuneration received and may not equate with the eligibility period for the calculation of superannuation entitlements. You must check the information you enter is correct, as we will not be held accountable for any incorrect calculations.