In this blog, we’ll discuss the basics of superannuation. Let’s get started:
What is superannuation?
Superannuation is money that your employer puts aside over your working life for you to live on after you retire from work. Super is crucial because if you save more, you will have enough funds for your retirement. You are allowed to withdraw your super in specific circumstances—for instance, when you turn 65 or retire.
Can you access your super early?
Beware of promoters who offer different plans to access your super early before you retire. The promoters will influence you by saying that they can help you access your super savings for buying a house or car, paying off debts, or even going on holiday. These schemes are not legal and heavy penalties apply if you try to access your super early and illegally.
What if you missed a super due date?
Your employees must receive their super guarantee payments by the quarterly due date. 28 July was the due date for the latest SG quarterly contributions. If you missed a super due date, you need to pay the SG charge to the ATO and file an SGC statement by 28 August. You can ask tax accountants in Melbourne if you don’t know how much super you need to pay.
Quarterly super payment due dates
You are required to contribute superannuation for eligible employees. To avoid incurring the Superannuation Guarantee Charge (SGC), ensure that the employee’s super fund payments are received on or before the quarterly due dates.
Contributions should be made at least four times a year, starting from the day employees begin working for you. The due dates for these payments are on a quarterly basis.
| Quarter | Period | Payment due date |
| 1 | 1 July – 30 September | 28 October |
| 2 | 1 October – 31 December | 28 January |
| 3 | 1 January – 31 March | 28 April |
| 4 | 1 April – 30 June | 28 July |
Certain superannuation funds, awards, and contracts may require more frequent superannuation contributions than the quarterly schedule. Simply adhering to the SG contribution deadlines doesn’t guarantee compliance with all superannuation funds, awards, or contracts.
It’s important to review your contractual obligations with your super fund, award, or contract to ensure that super contributions are made punctually. Your employee’s superannuation fund must receive payments on or before the quarterly due dates.
How much super do you need to pay?
Being an employer, you are required to pay a super guarantee to your eligible employees at least 4 times a year. The minimum super guarantee rate you have to pay from 1 July 2024 is 11.5% of your employee’s ordinary time earnings (OTE). This is scheduled to increase progressively to 12% on 1 July 2025. You need to pay the super guarantee charge if you don’t have the SG amount by the quarterly due date. Moreover, you can ask a tax agent in Melbourne if you don’t know how much super you need to pay.
How to access your super benefits?
Generally, when you retire, you can access your super. However, there are some circumstances that allow you to access your super savings early, such as specific medical conditions and severe financial crises. You need to ask your super fund if you want to access your super early.
Temporary residents leaving Australia
If you are a temporary resident and working in Australia and you qualify for super, your employer needs to make SG contributions for you. Once you have left Australia, you may be paid your super money. This payment is known as a Departing Australia Super Payment. Permanent residents of Australia and New Zealand citizens don’t qualify for this payment.
Super money from overseas
If you bring your pension or your own money from overseas, there are some special tax rules you must know. Speak to your migration agent or financial adviser.
Conclusion
The blog outlines the basics of superannuation for employees and employers. If you are still confused about superannuation, you can ask Reliable Melbourne Accountants for help.
More Useful Links:
Bank Reconciliation Statement