Meeting your super obligations as an employer ensures that you contribute towards the financial future of your workers. You need to pay super guarantee (SG) on time, at the correct rate and to the right fund.
Super Guarantee Eligibility
Generally, all workers qualify for the super guarantee. There are some additional rules for workers who are:
- Under 18 years old
- Private or domestic workers
- Independent contractors
- International workers
- Self-employed.
It’s crucial to correctly classify your workers to avoid outstanding tax and super obligations.
Check: Pay your super for the eligible workers
Have you determined:
- Each worker who qualifies for whom you need to pay superannuation, which may include independent contractors
- If you have overseas workers
- Consider if you need to apply for a certificate of coverage, so you don’t need to pay super in 2 countries.
Check: Choose the right super fund to pay your workers
Make sure you have provided your eligible workers a choice of super fund within 28 days of their start date. Have you:
- Offered your workers a superannuation standard choice form
- This form allows your workers to tell you their choice of super fund
- Asked for the details of your worker’s stapled super fund if they don’t make a choice
- Selected your default super fund if your worker does not have a stapled super fund and has not chosen a fund
- Offered your worker’s tax file number (TFN) to their super fund after selecting
- Understood how to make a super payment and checked that you are paying to a complying fund or retirement savings account (RSA).
Pay and report
You’ll need to check out how much super to pay for eligible workers, which includes knowing what payments are considered ordinary time earnings (OTE). The current SG rate is 12% of your eligible worker’s OTE. Ensure that payments to eligible workers on or after 1 July reflect the current rate. For the quarter ending 30 June 2025, apply the 11.5% SG rate for payments made prior to 1 July 2025.
Check: Pay contributions on time
Have you:
- Checked your super payment due dates
- Super must be paid at least 4 times a year. The SG due dates are:
- Quarter 1 – 28 October
- Quarter 2 – 28 January
- Quarter 3 – 28 April
- Quarter 4 – 28 July
- Super must be paid at least 4 times a year. The SG due dates are:
- Allowed enough time for the contribution to be processed.
- Processing times can vary. If you use a commercial clearing house, ensure you allow time for your payments to reach your workers’ super fund. Super payments are paid on the date they are received by the fund, not the commercial clearing house.
- When a super due date is on a weekend or public holiday, your contribution should be received by the fund on or before the next business day.
Unpaid or late super payments
If you miss the quarterly due date even by a day, or don’t pay qualify worker’s SG amount in full, on time and to the right fund, you need to pay the super guarantee charge (SGC) and file an SGC statement with the ATO. If you don’t, penalties may apply. The SGC is:
- Paid to the ATO
- More than the super you would have otherwise paid to the fund of workers
- Not tax-deductible.
Check if you haven’t paid on time
If you haven’t paid on time, ensure you:
- Calculate the SGC
- File the SGC statement and pay the SGC by the due date
- The SGC and statement due dates are
- Quarter 1 – 28 November
- Quarter 2 – 28 February
- Quarter 3 – 28 May
- Quarter 4 – 28 August
- The SGC and statement due dates are
- Provide full information for each worker, to ensure the dedicated SG entitlements are paid to the eligible worker’s super fund, including their
- Full legal name
- Tax file number
- Date of birth
- Last known address.
Use the SGC statement instructions when filling this form. It’s crucial to take the time to get this right to ensure the ATO can accept your SGC statement. The earlier you file correctly and pay your overdue super, the fewer charges and interest you will pay.
If you are sure about the process or you need help, you can contact taxation accountants.