• Superannuation basics

    Superannuation or 'super' is money saved over your working life to live on when you retire from work. For most people, your employer pays super into an account for you. You can also contribute your own money into your super savings and sometimes the government will make a contribution to your super.

    There is important information to consider about super whether you are an employee or an employer.

    Super for Norfolk Island

    Superannuation guarantee (SG) for Norfolk Island applies to quarters starting on or after 1 July 2016. SG is the minimum amount of super employers must pay into a complying super fund for their employees. It is calculated as a percentage of the employee's earnings.

    SG will be introduced to Norfolk Island at a transitional rate, starting at 1% and slowly increasing over a twelve-year period.

    Work is performed in Australia

    Applies to both Australian and Norfolk Island employers who engage either Australian or Norfolk Island resident employees.

    Not new, SG was payable before 1 July 2016.

    The general SG rate continues to apply from 1 July 2016.

    General SG rate

    Work is performed on Norfolk Island

    Applies to Australian employers engaging Australian resident employees.

    Not new, SG was payable before 1 July 2016.

    The general SG rate continues to apply from 1 July 2016.

    General SG rate

    Work is performed on Norfolk Island

    Applies to both Australian and Norfolk Island employers engaging Norfolk Island resident employees.

    Applies from 1 July 2016.

    SG was not payable before 1 July 2016.

    Norfolk Island Transitional SG rate

    The transitional SG percentage rates will be phased-in as follows:

    Financial year

    Norfolk Island transitional SG rate

    General SG rate

    2016-17

    1.0%

    9.5%

    2017-18

    2.0%

    9.5%

    2018-19

    3.0%

    9.5%

    2019-20

    4.0%

    9.5%

    2020-21

    5.0%

    9.5%

    2021-22

    6.0%

    10.0%

    2022-23

    7.0%

    10.5%

    2023-24

    8.0%

    11.0%

    2024-25

    9.0%

    11.5%

    2025-26

    10.0%

    12.0%

    2026-27

    11.0%

    12.0%

    2027-28

    12.0%

    12.0%

    Some employers may have to pay some super at the general SG rate and some at the Norfolk Island transitional SG rate if they have employees in both categories.

    Super for individuals

    Super is money that is invested in a super fund to provide for your retirement. For most people, super begins when you start work and your employer starts paying super for you. You can also increase your super savings with your own contributions.

    If you wish to choose the super fund which your employer pays super into, you will need to open an account and provide the account details to your employer. You can ask your employer for a form to do this. Even if you don't make a choice and use the employer nominated fund, you will still need to open an account with that fund.

    For Norfolk Island employees, the first due date for employers to pay your super is on 28 October 2016. Having an open account ready before this date will give your employer time to set up and avoid delays with the payment of your super.

    See also:

    Super for employers

    As an employer, you may need to contribute super for eligible employees. Super is separate to salary and wages you pay to your employees. It is important to understand your super obligations as an employer and that you are applying the applicable SG rates listed above for Norfolk Island residents.

    SG is payable at least on a quarterly basis and is due by the 28th day after the end of each quarter. You may choose to pay more frequently, such as at the same time as your payroll.

    Your eligible employees may be entitled to choose their super fund – if so; you must provide them with a form enabling them to make their choice.

    See also:

    SuperStream

    SuperStream is a compulsory standard for making super contributions. As an employer, it means you need to pay super and send employee information electronically in a standard format.

    If you do not have access to a computer you can still meet your SuperStream obligation by engaging an agent to assist (commonly a bookkeeper or accountant). You can still submit your contributions manually to the fund or funds concerned if you genuinely do not have internet access.

    See also:

    Last modified: 13 Nov 2015QC 47353