What is SG?
Superannuation Guarantee (SG) legislation requires most employers to pay 11.5% (2024/25 financial year) of an eligible employee's ordinary time earnings (OTE) as super. An employer can claim these payments as a tax deduction if paid on time.
SG eligibility & how to calculate
- All employees are eligible for SG from 1 July 2022, regardless of their earnings.
- Calculate SG based on the employee's ordinary pay, which may include bonuses or allowances.
- Employers must also pay SG contributions for eligible employees who are on leave (annual leave, paid sick leave, long service leave, and in some circumstances workers' compensation).
Next steps
Talk to us
- Have questions or need clarification? We're here to help.
Join as an Employer
- Sign up with us to streamline your superannuation management.
Nominate legalsuper as your default fund
- Choose a reliable super fund as your default option for employees.
Sign up to make payments
- Register to efficiently manage and make your SG payments.
Frequently Asked Questions
- SG payments are required at least every three months.
- Deadlines are 28 October, 28 January, 28 April, and 28 July.
- Employees can select their super fund, or you can assign them to a default fund.
- 'Stapling' refers to an employee's existing super fund that follows them when they change jobs.
There's a cap on the maximum SG payment per employee, adjusted annually.
Collect and promptly submit employees' Tax File Numbers (TFNs) to their super funds.
Late or missed SG payments require reporting to the ATO and incur the Superannuation Guarantee Charge, which includes extra fees and interest.
- Maintain records of offering super fund choices and of SG payments made.
- Report extra super contributions on employee's annual payment summaries if above the required amount or if the amount contributed has been influenced by the employee.
From 1 November 2021, if a new employee doesn't choose a fund, the employer is required to check if the employee already has a fund by contacting the Taxation Office. If a super fund already exists for the employee, the employer is required to pay super into this account, which is known as a 'stapled super fund'.
Yes. If there's no chosen fund or stapled super fund the employer must pay super contributions into their nominated default fund. Under the super guarantee, employers have to pay super contributions of 11.5% of an employee's ordinary time earnings when an employee is: over 18 years, or. under 18 years and works over 30 hours a week.
Visit the ATO for more information about your legal responsibilities as an Employer.
