The Super Guarantee legislation

What it means for employers.

As an employer, The Superannuation Guarantee (SG) Legislation requires that you contribute to the superannuation savings of your employees. Here are the key facts you should be aware of, plus those all-important contribution due dates

What is the SG?

The SG started on1 July 1992. It was introduced to ensure that as many Australians as possible have access to superannuation and to provide higher standards of living in retirement for future generations.

9% is the minimum contribution amount

The Superannuation Guarantee contribution rate is 9%. This is required to be paid for all eligible employees. SG payments are usually calculated as a percentage of ordinary time earnings.

There is a limit on the amount of super support you are required to provide for your employees. For 2006/07, you are only required to pay SG contributions on earnings up to $140,960 pa (assessed quarterly).

How does award superannuation fit with the SG?

Superannuation is a feature of most federal and a large number of state awards. As an employer, any superannuation contributions you make under an award, into a complying fund, will also count towards meeting your SG obligations. However, you need to check that the contributions are enough to satisfy both the award and SG requirements.

Quarterly Dates Superannuation Guarantee	Cut-off Dates For employer contributions
1 July - 30 September	28 October
1 October - 31 December	28 January
1 January - 31 March	28 April
1 April - 30 June	28 July

When are SG payments due?

From 1 July 2003, the Quarterly Superannuation Guarantee (SG) came into effect. Even though most NGS Super employers make their contributions monthly, these dates are still important.

For example, if you have paid your July and August contributions on time but your September payment is over a month late (paid after 28 October) you can be penalised by the ATO. Employers who fail comply may incur the Superannuation Guarantee Charge.