Superannuation Guarantee

The Superannuation Guarantee (SG) legislation requires employers to contribute a minimum level of super for employees who:
• Earn at least $450 in a calendar month;
• Are aged less than 70 years (unless contributions are mandated after age 70); and  
• Are aged over 18 or, if under age 18 are working at least 30 hours per week.

Generally, employees are all individuals who receive payment in the form of salary or wages in return for their labour or services.

Calculating the Superannuation Guarantee up to 30 June 2008

The minimum Superannuation Guarantee level is equal to nine per cent of the employee’s notional earnings base (as defined by the Superannuation Guarantee legislation) which is the same as their ordinary time earnings. The following table identifies what should be included in ordinary time earnings.

Ordinary time earnings are generally what employees earn for their ordinary hours of work, including:
• over-award payments
• commissions
• allowances, and
• paid leave.

Ordinary time earnings does not include overtime.

Although Superannuation Guarantee legislation requires employers to pay contributions at least quarterly, Intrust Super requires superannuation contributions to be paid monthly. Monthly payments are important to ensure your employees’ insurance cover continues.

If you are unsure of your Superannuation Guarantee obligations, contact the Tax Office on 13 10 20 or visit www.ato.gov.au.

Calculating the Superannuation Guarantee from 1 July 2008

From 1 July 2008, employers have to use ordinary time earnings as defined in the superannuation guarantee law, to calculate super guarantee contributions for their employees. This ensures all employees are treated the same for super guarantee purposes.

If you were using an earnings base other than ordinary time earnings, to calculate super guarantee contributions, you must be using ordinary time earnings for all employees from 1 July 2008.