When Are Superannuation Payments Due?

Superannuation, often referred to as “super,” is a retirement savings system unique to Australia, where employers are legally obligated to contribute a portion of their employees’ earnings into a superannuation fund. This system is designed to help individuals accumulate funds for their financial well-being in retirement. Employers have specific legal responsibilities to ensure these contributions are made accurately and on time, adhering to regulations set by the Australian Taxation Office (ATO).

Calculating Superannuation Contributions

Determining the correct amount of superannuation to pay involves understanding employee eligibility and what earnings are subject to contributions. Generally, an employer must pay super for employees who are 18 years or older, regardless of how much they are paid. If an employee is under 18, they become eligible if they work more than 30 hours in a week. This applies to full-time, part-time, and casual workers.

The calculation of superannuation contributions is based on an employee’s Ordinary Time Earnings (OTE). OTE includes regular payments for ordinary hours worked, such as salary, wages, commissions, shift loadings, and most allowances, provided they are not purely reimbursements. Payments typically excluded from OTE are overtime payments, expense reimbursements, and certain lump sum payments made upon termination of employment. The minimum super guarantee (SG) rate is a percentage of an employee’s OTE. As of July 1, 2024, the SG rate is 11.5%, with a scheduled increase to 12% from July 1, 2025. To calculate the superannuation owed, an employer multiplies the employee’s OTE (before tax) by the current SG rate.

Quarterly Superannuation Payment Deadlines

Employers must pay superannuation contributions for eligible employees at least four times a year. These payments are due quarterly, and to avoid penalties, they must be received by the employee’s super fund on or before the specified due dates. The payment is considered “paid” when the super fund receives it, not when the employer sends it.

The standard quarterly periods and their corresponding due dates are:
1 July – 30 September: Due by 28 October.
1 October – 31 December: Due by 28 January.
1 January – 31 March: Due by 28 April.
1 April – 30 June: Due by 28 July.

If a superannuation due date falls on a weekend or a public holiday, the payment is due on the next business day.

Employers can choose to make payments more frequently than quarterly, such as fortnightly or monthly, but the total super guarantee contribution for the quarter must still be paid by the quarterly due date. Failure to meet these deadlines can result in the Superannuation Guarantee Charge (SGC), which includes interest and an administration fee, and missed or late payments are not tax-deductible.

Making Payments and Keeping Records

Employers are required to make superannuation contributions electronically using SuperStream. SuperStream is a standardized system that ensures money and data are sent electronically in a consistent format, streamlining the process between employers, super funds, and service providers. This electronic method helps reduce administrative errors and improves the efficiency of tracking payments.

To facilitate payments, employers can use superannuation clearing houses. These services allow an employer to make a single payment to cover all employees, even if contributions are going to multiple super funds. The Australian Taxation Office (ATO) provides a free Small Business Superannuation Clearing House (SBSCH) for eligible small businesses. Payments made through the ATO’s SBSCH are considered received on the date the SBSCH accepts them, whereas with commercial clearing houses, the payment is considered paid only when it reaches the employee’s super fund. Alternatively, some employers may pay directly to super funds if their payroll system supports direct electronic payments via SuperStream.

Maintaining accurate records is an important part of an employer’s superannuation obligations. Employers must keep records related to superannuation payments, including proof of payment, the amounts paid, payment dates, employee details, and OTE calculations. These records must generally be retained for at least five years.