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Super payment rules

Superannuation dates and more

Superannuation guarantee payment dates

Quarter Superannuation contributions due date Super guarantee charge due date
1 July – 30 September 28 October 28 November
1 October – 31 December 28 January 28 February
1 January – 31 March 28 April 28 May
1 April – 30 June 28 July 28 August

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 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 9.5% of $57,090 per quarter (equivalent to $228,360 for the year), which works out to be a contribution of $5,423.55 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
Employer super calculator

Assumptions

We assume that the employee is an Australian resident and has provided a tax file number to their employer.

Employees can be full time, part time or casual.

The Super Guarantee is currently set at 9.5% of ordinary time earnings. This rate is set to rise incrementally to 12% by 2025. The SG percentage can be manually increased in the calculator.

If monthly salary (before tax) is $450 or more, employees are generally entitled to SG payments.

Employees under 18 must also work more than 30 hours per week to be eligible for SG payments.

The maximum super contributions base is set at $57,090 per quarter for the 2020-21 financial year. If an employee earns over this amount, the employer is not obligated to make SG contributions for anything above the limit.

Disclaimer

This calculator is not intended to be relied upon for the purposes of making a financial decision. You should consider your objectives, financial situation and needs, which are not accounted for in this information, before making any investment or financial decisions.

You are responsible for your own investment decisions and should obtain specific, individual advice from a financial services licensee before making any financial decisions.