Your Obligations

Superannuation Guarantee (SG) legislation requires you to contribute 9% of an employee’s ordinary time earnings to super if:

They are under the age of 70
They earn more than $450 before tax in any calendar month
If under 18, they work more than 30 hours in a week and earn more than $450 before tax in any calendar month.

You may have additional obligations under an award or workplace agreement or you may make additional contributions on behalf of an employee if you choose to.

When do I have to contribute?

REST rules require that employers pay their employees' super each month.
Under SG legislation, employers must pay employer and salary sacrifice contributions for employees at least quarterly.
After-tax member contributions must be forwarded to REST by the 28th day of the month following the month in which the contribution was deducted.

Failure to pay SG

The Australian Tax Office may apply a penalty called the SG charge if employers pay late. It may include the SG shortfall, interest and an administration fee.

From 24 June 2008 you will generally be able to offset super guarantee contributions paid late to a super fund against the SG charge you owe to the ATO for not meeting your super obligations.

Contribution caps

Concessional contributions (including employer and salary sacrifice contributions) are taxed at a rate of 15%. The concessional contribution cap is $25,000 per income year.

For those aged 50 and over, there is a transitional $50,000 cap until 30 June 2012. From 1 July 2012, the concessional contribution cap of $50,000 (indexed) per income year will be introduced as a permanent measure for those aged over 50, but only where total superannuation savings are less than $500,000.

Employees on leave

Superannuation should be paid on behalf of employees when at work or on leave such as:

Paid sick leave
Other paid leave (eg compassionate leave, jury service etc)
Long service leave
Annual leave

You are not required to pay superannuation for employees on unpaid leave, but you must advise us so that any insurance can be maintained.

Choice of super fund obligations

Choice of Fund legislation allows eligible employees to choose which super fund their SG contributions are paid into.

As an employer you are responsible for identifying which employees are eligible for Choice of Fund.

For more information about meeting your Choice of Fund obligations visit the Australian Taxation Office (ATO).

Standard choice form

You must provide a Standard choice form to all eligible employees in these circumstances:

Within 28 days of an employee starting
Within 28 days of an existing employee requesting one in writing
When you become aware that the fund your employee has chosen is no longer an eligible choice fund
When an employee is a member of the default fund and you change the default fund

Providing employee Tax File Numbers (TFNs)

You can provide the TFN of new employees with your contribution.

Employers are obliged by law to provide REST with an employee's TFN within 14 days of them quoting it to you, or with your first contribution (whichever is the later). The ATO may apply penalties if you fail to comply.

When you supply us with your employees' TFNs:

We will be able to accept personal voluntary contributions for your employees
Additional tax for non-quotation of TFN will not be charged
It will be easier to trace lost super

Keep us up to date

So that your payments are correctly and promptly allocated, please advise us when:

Employees leave
New employees start
Employees take maternity leave, paternity leave, or unpaid leave. This is important for insurance purposes
An employee dies. We can arrange for their account balance and any insured amount be paid to their dependant(s)
The contact person at your company changes
The trading name of your business changes
Your telephone number, mobile number, postal address or email changes
Any of your employees make a change to their address, contact details or name
Your business ceases trading, either voluntarily or involuntarily
You no longer have any employees who are members of REST