Super - what employers need to know

What every employer needs to know about super.

A downloadable version of Super - what employers need to know (NAT 71038, PDF 321KB) is available.

A quick look at your super obligations

Are you an employer for super purposes?	You're an employer if you employ a person under a verbal or written employment contract on a: full-time basis part-time basis casual basis. You may also be an employer for super purposes if you make payments to a person under a contract for labour.
Do you have to pay super for your employees?	Generally, you have to pay super for your employees if they: are between 18 and 69 years old inclusive are paid $450 or more (before tax) in salary or wages in a calendar month work full-time, part-time or on a casual basis.
Are you self-employed?	If you're self-employed, you don't have to make super contributions to a super fund for yourself. However, you may wish to consider super as a way of saving for your retirement. Most self-employed people can claim a full tax deduction for contributions they make to their super until age 75.
Do you have to pay super for contractors?	You may have to make super payments for contractors.
When do you pay super contributions?	Quarter 1 (Jul-Sep) 2 (Oct-Dec) 3 (Jan-Mar) 4 (Apr-Jun)	Cut-off date for payment 28 October 28 January 28 April 28 July
	When a cut-off date for payment falls on a Saturday, Sunday or public holiday, you can make your payment on the next working day after that date.
How much super do you pay?	You need to pay a minimum of 9% of each eligible employee's ordinary time earnings (that is, the amount they earn for their ordinary hours of work), up to the maximum contribution base for a quarter. If an employee's ordinary time earnings for a quarter are greater than the maximum contribution base, the employer only needs to pay a contribution of 9% of the maximum contribution base.
Can you claim a tax deduction?	Generally, super contributions are tax deductible in the financial year you pay them. You are unable to claim a tax deduction for the superannuation guarantee charge, because it is a penalty for failing to meet your super obligations by the cut-off dates.
Where do you pay super contributions?	You need to pay contributions into a complying super fund or retirement savings account. Your employees may be able to choose the super fund you pay their super contributions into.
Do you need to offer your new employees a choice of super fund?	You need to provide a Standard choice form (NAT 13080) to new employees who are eligible to choose a super fund. You need to provide this form within 28 days of the day they start working for you.
Do you need to report additional employer super contributions on the employee's payment summary?	From 1 July 2009, if your employees choose to salary sacrifice some of their before-tax income as super contributions which are in addition to compulsory contributions (such as contributions you are required to make under super guarantee law, awards, trust deed or rules of the super fund, or federal, state or territory laws), you will need to report these to us on your employee's payment summary. These are called reportable employer super contributions.
What records do you need to keep?	You need to keep records that show: the date and amount of super you paid for each employee how you worked out the level of super you paid that you have offered your eligible employees a choice of super fund the details of the super fund that you paid your employee's super into.
What if you don't meet your super obligations?	If you don't meet your super obligations, you'll have to pay a superannuation guarantee charge to us.