Superannuation Guarantee
Superannuation Guarantee
Answers to the top common questions about the superannuation guarantee are below.
Superannuation Guarantee - How much?
The amount of super your employer pays usually depends on how much you earn and the size of your employer's business.
If you are between the ages of 18 to 65 and paid $450 or more in a month your employer generally should be paying the Superannuation Guarantee.
Employers may satisfy their Superannuation Guarantee obligations by making sufficient contributions to a super fund which meets Government rules. Employers who don't do this must pay the Superannuation Guarantee Charge to the Tax Office. You will then get your super paid to you by the Tax Office. top
Your employer may also have an award obligation to make super contributions for you. If so, your employer will need to make sufficient super contributions to satisfy both the award and the Superannuation Guarantee requirements. The award often specifies the amount and frequency of these contributions and names the funds that can be used. top
What should your employer pay?
The amount of super support your employer pays for you is based on a set percentage of your earnings. This percentage will increase until the year 2002. By then your employer will be required to pay super support for you which is equivalent to 9% of your earnings. The following table shows how much your employer should be paying each year. At the moment the rate for small businesses is less than for large businesses. top
Superannuation Guarantee Contribution Rates
Small businesses
1999/00 7%
2000/01 8%
2001/02 8%
2002/03 and beyond 9%
Large businesses
2000 8%
2001 9% top
When should your employer pay this super?
Employers can meet their Superannuation Guarantee obligations by paying contributions for the previous financial year by 28 July. If by then your employer has not paid your super contributions, they will have to pay the Superannuation Guarantee Charge. Awards often require more frequent payments such as monthly. top
Yes. Superannuation Guarantee and award contributions are made by your employer for you. The money is held in a super fund in your name.
However, it is generally held (preserved) for your retirement. So you can't draw on it until you retire except in special circumstances.
What if you take maternity leave?
If you are on paid maternity leave you may be entitled to super contributions from your employer. Check with your employer.
If you take unpaid maternity leave you may be entitled to super contributions from your employer. Check with your employer.
However, you may be able to make your own super contributions for up to two years after stopping work. In some cases where you leave a job to raise a child you can make your own contributions for up to seven years. Check with your employer of financial adviser to see which time period applies to you. top
For Superannuation enquiries contact your union or the SA Unions.