close
This is a demonstration website for CCH Web Manager. For pricing and to find out more please contact us.

Tax Facts (Basic) - Superannuation Guarantee

In addition to employees' salaries and wages, employers are required to pay superannuation contributions on behalf of all eligible employees. This compulsory contribution is called the superannuation guarantee. The definition of employee for this purpose includes certain contractors. The minimum contribution from 1 July 2014 is 9.5% of each eligible employee's earnings base (usually their ordinary time earnings) and must be paid within 28 days after the end of each calendar quarter. Employers must also provide employees with a choice of superannuation fund.

The minimum contribution rate will remain at 9.5% until 30 June 2021. After that date, the rate will increase by 0.5% each financial year until it reaches 12% from 1 July 2022.

Employers are generally required to pay superannuation contributions for employees if they are:

  • Over the age of 18 (no upper age limit applies)
  • Paid $450 or more (before tax) in a calendar month.

If an employer fails to make the minimum contributions for a quarter by the due date, the employer is liable for the Superannuation Guarantee Charge (SGC). The SGC comprises the unpaid contributions calculated on a higher earnings base, plus an interest charge (which is credited to the employee's superannuation account) and an administration fee. The employer cannot claim an income tax deduction for the SGC.

The Australian Taxation Office (ATO) provides the following tools to help you understand and meet your obligations:

What We Do

We've also developed our traditional auditing and accounting practices into innovative client-focused services.

READ MORE

Who we are

At Smith Jones we aim to provide you with advice when your business needs it, not just when you ask for it.

READ MORE

Tool Box

View our handy online tools and resources featuring key dates, tax facts, useful links and online calculators.

READ MORE

Meet The Team

Donald Lawrence
Director
FIND OUT MORE
Diane McKim
Accountant
FIND OUT MORE
Brian Lemos
Accountant
FIND OUT MORE
Adam Avalos
Accountant
FIND OUT MORE
Millie Engel
Accountant
FIND OUT MORE
Mary Horvath
Reception
FIND OUT MORE

Smith Jones Blog

Contact / Connect