Paying Super Guarantee (SG) contributions

We recommend making monthly payments. Paying contributions monthly means you avoid incurring potential penalties. 

Your employees can also benefit greatly from monthly contributions to their accounts, as the investment can start earning interest and generating returns as soon as it is received.

For quarterly payments the SG deadline date is set 28 days after the end of each quarter.
 

If you’re making a before-tax contribution (salary sacrifice) on behalf of an employee, it must be paid to Rest by the 28th day of the month following the month from which the contribution was deducted.

Generally, most employees are eligible for Super Guarantee, there are some exceptions such as employees aged under 18, working 30 hours or less per week.

For more information on super guarantee eligibility and exceptions, visit the ATO website.

From 1 July 2022, the Government removed the $450 monthly minimum income threshold for SG contributions.

You need to pay SG contributions for employees who are at work or on leave such as:

• paid sick leave
• long service leave
• annual leave

There are some exceptions, for example, employees under 18 years of age who have worked less than 30 hours per week. 

For more information on super guarantee eligibility and exceptions, visit the ATO website.

To pay an employee super you will need:

• employee name
• employee TFN
• superfund name, ABN, Address, Number, USI
• employee membership number.

For all eligible employees, you must either:

• provide a Superannuation Standard Choice form to them within 30 days of their start; or
• request stapled super fund details for new employees. To do this visit the ATO website.

You’ll need to lodge a SG Charge Statement with the Australian Tax Office (ATO) and pay a penalty.

The penalty (SG charge) will be applied the following month. The charge will include the SG shortfall, interest and an administration fee which is not tax deductible and will result in an added expense to your business.

We have an obligation to take reasonable steps to ensure contributions for members are paid on time. If you fail to make contributions, we’ll send you a reminder. If we still don’t receive the outstanding contributions, we’ll ask our arrears collection agency to look into the matter.

For more information visit the ATO website.

As an employer, you must pay a minimum of 11% of each eligible employee's ordinary time earnings each quarter. If your employees are covered by an award or employment agreement which specifies a higher super contribution than 11%, you must pay that higher amount.
 
The SG rate is set to increase to 12% by 2025

You can use the ATO's calculator to help you calculate how much super you must contribute to your employees.

Rest has payment flexibility and options available for you:

ABT - Authorised Bank Transfer (ABT) – choose when your funds are transferred from your bank account.

BPAY®– pay your contribution using BPAY® from an account with a bank or financial institution.

EFT – pay your contributions electronically from an account with a bank or financial institution.

® BPAY and the BPAY logo are registered trademarks of BPAY Pty Ltd ABN 69 079 137 518

You can claim a tax deduction for the following contributions:

• Superannuation Guarantee (SG) contributions you make for employees in the financial year, if you meet the SG requirements and due dates. Missed payments may attract the super guarantee charge (SGC), which is not tax-deductible.
  
  
• Salary Sacrifice contributions.
  
  
• Contributions mandated by an industrial award.

The deductions you can claim depend on the type of business you operate. For more information, visit the ATO website. 

You can pay super to all your employees, no matter what fund they are with and in one payment with a clearing house.

SCH Online* Clearing House is a third-party clearing house available for all Rest employers and is accessible through EmployerAccess. For more information visit our clearing house section.

You can also use payroll providers, ATO’s Small Business Superannuation Clearing House (subject to eligibility) or other clearing house providers. You should refer to the relevant payroll provider or clearing house directly for more information about their services. 

* SCH-Online is operated by The Superannuation Clearing House Pty Limited (ABN 15 086 576 721), a corporate authorised representative (representative number 290290) of the product issuer, Pacific Custodians Pty Limited (ABN 66 009 682 866), Australian Financial Services License No. 295142. Rest does not issue or arrange the issue of SCH Online products and/or services. Rest does not recommend, endorse or express an opinion about SCH Online. As such, Rest does not accept liability for any loss or damage you incur in connection with your reliance on SCH Online. Rest does not receive any commissions or other benefits from Pacific Custodians Pty Limited as a result of your use of SCH Online. 

Yes, it’s important to notify Rest when making nil contributions, as these are reflected on your employees’ accounts even if the employee is not entitled to a Superannuation Guarantee contribution. This is particularly important if contributions are made via a Clearing House as nil contributions are not forwarded to a superannuation fund.

You must keep records that you have provided choice for eligible employees and details about your super contribution payments.

These records must show:

• how much super guarantee (SG) you paid for each employee and how it was calculated
  
  
• that you have offered each eligible employee a choice of super fund and evidence you have provided the standard choice form to all eligible employees
  
  
• Details of employees you don't have to offer a choice
  
  
• Confirmation that your nominated (default) fund offers a MySuper product.

These records must be available in or able to convert into English and records should be kept for 5 years. 

For more information visit the ATO website or contact us directly.