When Is Superannuation Due? Key Dates for Employers
Employers: Master your superannuation obligations. Learn key due dates, eligibility, and how to manage late payments to ensure compliance.
Superannuation is a fundamental component of Australia’s retirement savings system, where employers contribute a portion of an employee’s earnings into a dedicated fund. This system, often called “super,” aims to provide financial security during retirement. For employers, understanding these obligations and timely payment requirements is essential for compliance with Australian tax regulations.
Who is Eligible for Superannuation
Employers in Australia generally have a responsibility to pay superannuation contributions for most employees. An employee is typically eligible if they are 18 years of age or older, regardless of how much they earn. For employees under 18, eligibility applies if they work more than 30 hours in a week. This requirement extends to full-time, part-time, and casual workers, including temporary residents.
Some contractors may also be entitled to superannuation if their contract is primarily for their labor. Employers must identify all eligible employees to accurately meet their superannuation guarantee obligations.
Standard Superannuation Due Dates
Employers are required to pay superannuation guarantee (SG) contributions for eligible employees quarterly. Payments are due on the 28th day of the month following the end of each quarter. The standard due dates are October 28 (for earnings from July 1 to September 30), January 28 (for October 1 to December 31), April 28 (for January 1 to March 31), and July 28 (for April 1 to June 30). Contributions must be received by the employee’s superannuation fund on or before these specific due dates. If a due date falls on a weekend or public holiday, the payment is due by the next business day.
The minimum superannuation amount employers must pay is calculated based on an employee’s Ordinary Time Earnings (OTE). The current SG rate is 11.5% of OTE, which is scheduled to increase to 12% from July 1, 2025. Ordinary Time Earnings typically include regular salary, wages, commissions, shift loadings, and most allowances, but generally exclude overtime payments. Many employers utilize a superannuation clearing house, which allows a single payment to be made for all employees, and the clearing house then distributes the funds to the respective superannuation funds.
Addressing Unpaid or Late Superannuation
Failure to pay superannuation contributions on time, in full, or to the correct fund results in the employer incurring the Superannuation Guarantee Charge (SGC). The SGC is a penalty imposed by the Australian Taxation Office (ATO) and is more substantial than the original superannuation amount due. This charge is not tax-deductible for the employer, making non-compliance a costly oversight.
The SGC comprises three components: the superannuation shortfall, nominal interest, and an administration fee. The superannuation shortfall is the unpaid or underpaid super amount, calculated on an employee’s total salary and wages, which can include overtime, unlike the standard OTE calculation for regular contributions. Nominal interest, currently 10% per annum, accrues from the first day of the quarter in which the superannuation was due until the SGC statement is lodged or due, whichever is later. An administration fee of $20 per employee per quarter is also applied.
If an employer has unpaid superannuation, they must lodge an SGC statement with the ATO to report the shortfall and pay the calculated charge. Failure to lodge the SGC statement by its due date can lead to further penalties, up to 200% of the SGC amount.