If you pay a worker, you are also required to pay them super guarantee:
- Amount of pay – you pay it regardless of how much they are paid – their earnings amount is not relevant.
- Employee age – for employees who are
- 18 years or older, you pay it regardless of how many hours they work
- under 18 years old, you pay it if they work more than 30 hours in a week.
- Rate – the super guarantee rate is 11%.
- What it is calculated on – if you
Media: Super for employers
http://tv.ato.gov.au/ato-tv/media?v=bi9or7odhi4umo (Duration: 02:30)
You can use the eligibility tool to work out if you have to pay super for a worker.Super guarantee eligibility tool
Before 1 July 2022, you did not have to pay super guarantee for a worker earning less than $450 a month. You now have to pay regardless of their earnings.
If you are making a payment after 30 June 2022 for work done before 1 July 2022, you work out the amount of super guarantee based on when they are paid, not when they earned the income.
This means if you pay an eligible employee on or after 1 July 2022, you will need to pay their super regardless of how much they have earned, even if some of the pay period it relates to is before 1 July 2022.
Generally, all employees are eligible for super guarantee. It doesn't matter if the employee is:
- full time, part time or casual
- receiving a super pension or annuity while working (this includes employees on transition to retirement)
- a temporary resident, such as a backpacker
- a company director
- a family member working in your business.
There are additional eligibility rules for:
- employees under 18
- domestic or private workers
- international workers
- self-employed people
- high income earners who opt out of super.
Example: occasional employers
Each summer, Samir – a 32-year-old seasonal fruit picker – works at the ABC produce farm. He usually works 15 hours a month for 3 months, earning $435 a month before tax.
In 2021, Samir wasn't eligible for super guarantee as he didn't earn more than $450 in a month.
In 2022, Samir is eligible for super guarantee, which his employer pays at 10.5% of his ordinary time earnings.End of example
You must pay super guarantee on payments you make to an employee under 18 years old if they work for you for more than 30 hours in a week, regardless of how much you pay them. Their earnings amount is not relevant.
As discussed in Superannuation Guarantee Determination SGD 93/1, the number of hours worked is the actual number of hours the employee works in that week. You can't average the hours across fortnightly or monthly pay periods.
Example: under 18 years old and working different hours a week
Lily is 17 years old and has 2 jobs – working at a hardware shop and a local café.
From 20 to 24 June 2022, Lily worked 32 hours at the shop and earned $800 before tax. Her employer pays her on 2 July 2022.
Lily also works 6 hours a month in the café, earning $150.
As Lily has worked:
- more than 30 hours in one week in the hardware store, this employer pays her super guarantee for this week
- not more than 30 hours in a week in her job as a barista, this employer doesn't pay her super guarantee for this work.
A domestic or private worker does work:
- relating personally to you (not to a business of yours)
- relating to your home, household affairs or family – such as a nanny, housekeeper or carer.
You must pay super guarantee on payments you make to domestic or private workers if they work for you for more than 30 hours in a week, regardless of how much you pay them. Their earnings amount is not relevant.
Example: Domestic or private worker and working less than 30 hours a week
Noah works in a private arrangement as a housekeeper for Scarlett and he does all the cleaning and cooking at her home for 25 hours a week.
As Noah has worked less than 30 hours in one week, Scarlett does not need to pay his super guarantee regardless of how much she pays him.End of example
You may also have to pay super guarantee for a domestic worker or carer if the following both apply:
- You have a National Disability Insurance Scheme (NDIS) plan that you manage yourself.
- You use your funds to hire a carer or other domestic worker.
You must pay super for contractors if you pay them mainly for their labour. This is the case even if they quote an Australian business number (ABN).
Your worker is eligible for super guarantee even if they are a temporary resident, such as a backpacker or a working holiday maker.
If you send an Australian employee to work temporarily in another country, you must continue to pay super contributions for them in Australia.
If you have employees working overseas, you can apply for a certificate of coverage so you don't have to pay super in the other country as well.
However, you do not have to pay super for:
- non-resident employees who work outside Australia
- some foreign executives who hold certain visas or entry permits (phone us on 13 10 20 for information)
- employees temporarily working in Australia who are covered by a bilateral super agreement – you must keep a copy of the employee’s certificate of coverage to prove the exemption.
If you’re a non-resident employer, you do not have to pay super for resident employees for work they do outside Australia.
If you're self-employed as a sole trader or in a partnership, you do not have to pay super guarantee for yourself.
You do not have to pay super guarantee for members of the army, naval or air force reserve for work carried out in that role.
You do not have to pay super guarantee for high-income earners working for multiple employers who ask you not to pay it to them.
You must have an SG employer shortfall exemption certificate for the employee. We will send you the certificate after the employee has applied to us to opt out.Work out when employers need to pay super guarantee and which employees are eligible.