7 November 2024
Superannuation is a fundamental aspect of the Australian employment landscape, ensuring that employees have savings for retirement. Employers and employees both have distinct responsibilities when it comes to super, and understanding these differences is important for everyone.
Your employer responsibilities
As an employer, you play a pivotal role in managing superannuation for your employees. One of the primary responsibilities is to calculate, pay and report Superannuation Guarantee (SG) contributions. The SG rate is currently set at 11.5% of an employee's ordinary time earnings (OTE) and will increase to 12% on 1 July 2025. These contributions are based on the employee's OTE, which includes wages, commissions, some allowances, and certain bonuses.
Other responsibilities include:
- Pay contributions to a complying super fund: you must make these contributions (at a minimum) by the quarterly due dates set by the Australian Taxation Office (ATO). Remain up to date with proposed legislation changes such as PayDay Super.
- If you’re unable to meet these deadlines, it can lead to penalties and additional charges.
- Pay contributions through a SuperStream compliant system: introduced in 2014, SuperStream requires employers to make superannuation contributions electronically in a standardised format. This means that both the payment and the associated data are sent electronically, ensuring that contributions are processed quickly and accurately.
- Provide employees with a Standard Choice Form: this allows them to choose their preferred super fund. If an employee does not choose a nominated fund, you may be eligible to make contributions on their behalf into a stapled fund. Otherwise, you must pay the contributions into a default fund that meets specific criteria
- Keep accurate records of superannuation payments: this includes maintaining records of the amounts paid, the dates of payments, and the super funds where contributions were made. Employers must also report these contributions on the employee's payslip, ensuring transparency and accountability.
Your employees’ responsibilities
While employers manage the bulk of superannuation management, employees also have important responsibilities. One of the primary responsibilities is to provide their employer with the necessary information at onboarding and informing them of any personal changes. This includes completing the Standard Choice Form and providing details of their chosen super fund.
Other responsibilities include:
- Regularly checking their superannuation account online: this ensures their contributions are accurate. If there are discrepancies, employees should promptly raise the issues with their employer or the ATO.
- Changes in personal details: Employees must keep their fund informed of any changes to their personal details, such as a change of address or name. This ensures that the super fund can maintain accurate records and communicate effectively with the employee.
By fulfilling your respective responsibilities, both employers and employees can help improve financial and retirement outcomes.
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.