Your super obligations
All Australian businesses have responsibilities when it comes to superannuation, even if you have just one or two employees:
- Paying super
- Giving employees’ choice of super fund
- Deciding on your businesses’ super fund of choice
- Knowing when and how to make payments
- Keeping up with legislation and super changes
Meeting your legal obligations and managing super payments can feel complicated but it doesn’t need to be. Let us walk you through your responsibilities and remember we’re here to help.
Who to contribute for
Legislation requires employers to pay Superannuation Guarantee (SG) contributions for most of their employees. These contributions must be paid into a complying superannuation fund, such as Media Super.
There are some exceptions. Employers are NOT required to make super payments for employees who are:
- Aged under 18 years of age and working 30 hours or less per week
- Non-residents being paid for work done outside Australia
- Covered by bilateral superannuation agreements with other countries
- Certain senior foreign executives who hold certain visas or entry permits
- Paid to do work of a domestic or private nature for not more than 30 hours per week
Refer to the ATO website for more information.
How much to contribute
Generally, the current superannuation contribution rate under Superannuation Guarantee (SG) legislation is 11% of ordinary time earnings (OTE). The rate is legislated to progressively increase to 12% by 2025.
The amount an employer must pay may be different if there’s an Industrial or Enterprise Bargaining Agreement (EBA) or Award.
When to pay super
You are required by law to pay your employees’ Super Guarantee (SG) contributions at least quarterly. Each payment must be made by the following deadlines:
Quarter | SG tax deductibility deadline | Due date for SG payment |
1 July – 30 Sept | 28 October | 28 November |
1 Oct – 31 Dec | 28 January | 28 February |
1 Jan – 31 March | 28 April | 28 May |
1 April – 30 June | 28 July | 28 August |
Salary sacrifice contributions requested by an employee must be paid in accordance with the standard dates for super contributions listed above. Learn more about salary sacrifice contributions.
Voluntary after-tax deductions from an employee’s take-home pay must be paid within 28 days of the deduction being made. Learn more about after-tax contributions.
Managing super choice
Under the Your Future, Your Super legislation, from 1 November 2021, an employee must be linked to one super fund and they’ll take that existing ‘stapled’ fund from job to job unless they actively choose a different super fund.
This means you must provide a new employee with a Choice of Fund form (like our Media Super Choice of super fund: standard choice form) within 28 days of them starting.
New employees can choose to join your nominated default super fund or choose their preferred super fund by providing you with a completed Choice of Fund form. If your new employee doesn’t make an active choice of fund, you’ll need to use ATO Online Services to determine their stapled super fund.
For out more about what super stapling means for your business or read our Stapling fact sheet.
You’ll still need a default super fund
A default super fund is the super fund that your business nominates as the best fit to take care of the superannuation needs for all your employees. It’s important to choose a fund that acts in the best interests of your business and your employees.
By nominating Media Super as your default fund, you’ll join a community that supports and invests in your industry, with a history of strong long-term returns, competitive fees and cost-effective insurance. Read more about our products and services, as well as how we help build and nurture your industry in Why Media Super.
Keeping up with legislation
Single Touch Payroll
Single Touch Payroll (STP) is the standardised way all employers must report wages, PAYG withholding, super information and additional payroll information to the ATO. Instead of waiting until the end of the financial year, your employees’ payroll information is reported at each payroll using a compliant payroll platform.
SuperStream
SuperStream is a Government reform aimed at improving the efficiency of the super system by mandating that employers make super contributions electronically.
To ensure you’re compliant with the legislation you must submit payments through a SuperStream complying provider such as a clearing house or payroll system.
If you’re using our Employer Portal for your super administration, you have already satisfied the requirement to comply with the electronic standards under SuperStream.
Record keeping
As an employer you need to keep the following records in English for at least five years:
- Records showing the choice form has been provided to all eligible employees
- Details of employees who do not have to be offered a standard choice form
- Documents issued by the super fund showing you have made superannuation
contributions to an employee’s chosen fund - Records confirming that your employer nominated fund is a complying fund
Supplying tax file numbers
When an employee provides you with their Tax File Number (TFN), by law you’re required to provide this information to their super fund within 14 days of a new employee starting or when making the first contribution on their behalf.
To find out more about your super obligations, read our Employer obligations fact sheet.
We’re here to help
Call and speak to us today if you have any questions about your responsibilities as an employer.