7 November 2024
As an employer, if you find yourself in a situation where you’re not required to pay superannuation, you might wonder if there are any other actions you need to take.
Firstly, it's crucial to understand your obligations, check employee’s eligibility, and pay super to the correct workers.
Where super guarantee eligibility may not be met by certain employees, payment may not be required. Here are some instances:
Being self-employed
If you are self-employed, you aren’t required to make superannuation contributions for yourself. However, it may be worth considering voluntary contributions1 to your super fund. This can help you build a substantial retirement savings over time. Voluntary contributions can be made through salary sacrifice arrangements or after-tax contributions.
Employment exemptions
If your employees are working in a type of employment that exempts them from super contributions such as employees under 18 years of age working 30 hours in a week or less, or domestic and private workers working 30 hours in a week or less, you may be exempt from being required to make super contributions. Even if you don’t pay super, your employees may still be eligible for other benefits or entitlements.
Stay up to date
Another important consideration is to keep accurate records of your employees and contractors. This includes maintaining records of payroll, employment contracts, and any correspondence related to their superannuation status. Keeping detailed records can help you provide evidence of any exemption from super contributions if needed and ensure that you are compliant with any legal requirements.
Super laws and regulations
Superannuation policies can change over time, and staying up to date with the latest information can help you ensure that you are meeting your obligations and taking advantage of any new opportunities. You can stay informed by regularly checking the Australian Taxation Office (ATO) website and changes to superannuation. Learn more about the recent proposed legislation changes for PayDay Super.
Professional advice
Consulting with professionals, such as financial adviser, accountant or bookkeeper can help you understand your specific situation and provide guidance. They can help you navigate the complexities of superannuation and ensure that you are making informed decisions about your obligations and financial future.
While there are many circumstances where you may not need to pay superannuation, it is important to ensure you remain compliant. Understanding the reasons for the exemption is key, one way you can let AustralianSuper know if you don’t need to make a payment for an employee is by completing the “No Super Payment Required” form via the Business Portal or available directly here.
For more detailed information and examples, you can refer to the Australian Taxation Office's guidelines to work out if you have to pay super.
1. Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. Salary sacrifice may affect some Government benefits. We recommend you consider seeking financial advice before deciding which arrangement is right for you.
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.