Super for your new employees

When a new employee starts work, you need be sure you know what your super obligations are, and what you need to do to meet them.

Super guarantee eligibility

Who is an employee?

An employee is anyone who receives salary or wages in return for their labour or services.

For super guarantee purposes, employees may also include:

• a director of a business
• an employer’s family member who works in the business, or
• a contractor.

To work out if your worker is an employee or a contractor, use our Employee/contractor decision tool.

Who is eligible for super contributions?

Generally, your employees are eligible for super if they:

• are between 18 and 69 years of age inclusive
• are paid $450 (before tax) or more in a calendar month, and
• work full-time, part-time or on a casual basis.

You also have to pay super for any employee who:

• is under 18 years of age
• you pay $450 or more (before tax) in a calendar month, and
• works full-time, part-time or on a casual basis for more than 30 hours in a week.

Temporary residents may also be eligible for super. For more information, refer to Temporary residents - Departing Australia.

We have an electronic tool to help you work out if someone is eligible for super contributions, the Super guarantee eligibility decision tool.

Do I have to make super payments for a contractor?

Yes, you may need to make super payments for contractors you pay under a contract that is wholly or principally for labour. This is even if the worker quotes an Australian business number (ABN).

A contract is principally for labour if more than half of the dollar value of the contract is for the person’s labour, which may include:

• physical labour
• mental effort, or
• artistic effort.

We have an electronic tool to help you work out if someone is eligible for super contributions, the Super guarantee eligibility decision tool.

Who is not eligible for super contributions?

There are some employees who may be exempt from receiving super contributions. Employees are not eligible for super if they:

• are paid less than $450 (before tax) in a calendar month
• are under 18 years of age and working 30 hours or less per week
• are a foreign executive who holds certain visas or entry permits under the migration regulation
• are paid to do work of a domestic or private nature for not more than 30 hours a week. For example, a part-time nanny or housekeeper
• are members of the Army, Navy or Air Force Reserve, or
• are employees temporarily working in Australia for an overseas employer and are covered by a bilateral social security agreement. A Certificate of coverage must be presented to receive the exemption.

To work out if someone is eligible for super contributions use the Super guarantee eligibility decision tool.

Last Modified: Wednesday, 27 May 2009