Asset Super

What you need to know

Under the Superannuation Guarantee (SG) legislation, you have to contribute 9% of your employees’ base earnings to a complying super fund.

Your employee earnings base may be stated in an award, an agreement or contract with your employer, an occupational super arrangement or a law of the Commonwealth, a State or a Territory.

If none of these applies, the earnings base will be based on ‘ordinary time earnings’. This is what your employee earns for ordinary hours of work, which generally includes their ordinary pay, over-award payment, shift loading and commission.

From 1 July 2008 all employers will be required to calculate the minimum SG contributions using ordinary time earnings.

Do I have to pay SG for all my staff?

Generally yes, unless the employee in question is:

• Paid less than $450 in a calendar month; or
• Under 18 and working less than 30 hours a week; or
• Over 70; or
• a non-resident working overseas.

There are other less common exemptions which you can check with the ATO information line on 13 10 20 or go to www.ato.gov.au.

How often do I have to pay SG?

SG contributions must be made every quarter, or more frequently if you prefer. The deadline for payment of each quarter’s SG contributions is the 28th of the following month.

Quarter	Due date for SG contribution payment
1 July to 30 September	28 October
1 October to 31 December	28 January
1 January to 31 March	28 April
1 April to 30 June	28 July

Where do I pay the contributions to?

You must pay contributions into a complying super fund or retirement savings account. The fund should be able to provide you with a Letter of Compliance – you can download Asset’s here.

If the employee is eligible for choice of fund, the fund you contribute to may be a fund they choose or it may be your default fund.  For more information about Choice of Fund, click here. To nominate Asset Super as your default fund, simply speak to one of our Client Relation Managers.

What if I don’t pay on time?

If you don’t meet your super obligations, you will incur a super guarantee charge. You must pay this charge to the Australian Taxation Office if you don’t pay:

• enough super contributions (at least 9%) for each eligible employee
• super contributions by the cut-off date for payment, or
• super to each employees’ chosen super fund.

If you don’t meet your obligations, you will have to lodge a Superannuation guarantee charge statement

Still need more information?

The Superannuation Guarantee is administered by the Australian Tax Office. You can access more information including their guide for employers entitled Superannuation Guarantee – how to meet your super obligation, from their website at www.ato.gov.au or call their information line on 13 10 20.