What you need to know
Unless an industrial award prescribes a particular fund, you can elect Intrust Super to be your Employer Fund (or ‘default fund’). This is the superannuation fund that you contribute to for eligible employees who don’t choose their own fund.
By choosing Intrust Super as your default superannuation fund, you’ll enjoy a number of employer benefits and will also save time by minimising the number of funds you deal with.
Intrust Super is a complying superannuation fund that meets all the requirements of an Employer Fund:
- We provide a compliant My Super product which includes minimum levels of life insurance.
- We accept employer contributions.
- We are registered as a complying fund with the Australian Prudential Regulation Authority (APRA).
Paying superannuation contributions on time
You can make SG payments monthly or quarterly. The ATO requires that you pay your SG contributions by the following due dates:
|SG Quarter||Due date of SG Payment|
|1 July - 30 September||28 OCtober|
|1 October - 31 December||28 January|
|1 January - 31 March||28 April|
|1 April - 30 June||28 July|
In the case where the due date falls on a weekend or a public holiday, then the SG payment must be made by the next business day.
What if I miss a payment deadline?
When the quarterly SG contribution deadline is missed, the ATO requires employers to lodge a statement. A financial penalty also applies, known as the “SG Charge”. The SG Charge equals the amount of shortfall super that needs to be paid for the employee[s], plus interest, plus an administration fee. Unlike SG contributions that are paid on time, no part of the SG Charge is tax deductible – this increases the extent of the financial penalty.
Which employees do I need to pay superannuation for?
Under the superannuation guarantee (SG) legislation, employers must contribute a minimum level of superannuation for their employees who meet the following criteria:
- Earn at least $450 in a calendar month or a lesser amount if specified in a relevant award. For example workers under the Hospitality Industry General Award (HIGA) need to earn at least $350 in a calendar month – please check if an award applies to your company.
- Are aged less than 70 years (unless contributions are mandated after age 70^).
- Are aged over 18 or, if under age 18, are working at least 30 hours per week.
Once an employee reaches age 65:
- You can only make contributions to their superannuation if they are made as a result of an industrial award or SG obligation (i.e. a mandatory contribution).
- They will also have to complete a Work Test Questionnaire confirming that they have worked at least 40 hours in a period of no more than 30 consecutive days during the same financial year.
Once an employee reaches age 70:
- You can no longer contribute to their superannuation unless the contributions relate to salary paid before they turned 70^.
^Note that the maximum age limit will increase to 75 from 1 July 2013.
How do I calculate how much superannuation I need to pay?
The minimum SG level is equal to 9.5% of each employee’s ordinary time earnings (i.e. the amount they earn for their ordinary hours of work). This includes:
- over-award payments
For more information about ordinary time earnings and your SG obligations, please visit the ATO’s website
What if Intrust Super isn’t named as a default fund under the award?
Industrial awards and many workplace agreements require employers to make superannuation contributions for the benefit of their employees. These sometimes include naming the fund or a range of funds, where employer contributions must be paid. Awards also permit your employees to choose their own superannuation fund.
If Intrust Super isn’t named as a default fund under the award, you can still contribute to Intrust Super on behalf of the employee. The employee simply needs to complete a Standard Choice Form.
Alternatively, if you were contributing to Intrust Super before 12 September 2008, you can continue to contribute to Intrust Super for any existing or new employees. Even if the relevant award does not name Intrust Super, or the employee does not complete a Standard Choice Form. Find out more about how to sign-up new employees here.
Your Choice of Fund obligations
Under ‘Choice of Fund’ legislation, employers have a number of obligations:
- You must ensure that your eligible employees are aware they can choose their superannuation fund, and you must provide them with a Standard Choice Form. When new employees start, you have 28 days from the day they start work to give them the form.
- If your employee does not want to exercise their right to choose their superannuation fund, you should ensure you have a default Employer Fund, such as Intrust Super, so you can easily set-up an account to pay their contributions into.
Once you start paying contributions into your employee’s chosen fund, there are some ongoing obligations:
- You must allow your eligible employees to change where their superannuation is paid once every 12 months.
- You also need to keep records of their choices and evidence that you have offered your eligible employees a choice of super fund.
We’re here to help
As your default Employer Fund, we can help you every step of the way:
- Your dedicated Client Service Manager will provide ongoing support and training, and can explain anything you’re unsure of, including which of your employees are eligible to choose their own fund.
- We can also provide you with information to give to your employees to help them make an informed decision.
Find out more about how to join Intrust Super here.