Superannuation rates

Managing superannuation contributions for your small business employees can often be a difficult and tedious task. So we have created an easy guide to help you understand what some of your obligations are as small business owners.

What is the superannuation rate for my small business employees?

You’re required to make super guarantee contributions to employees if they’re 18 years or over and paid $450 or more gross salary in a month. The table below shows the key superannuation rates in 2013 and beyond:

Period Superannuation rate

1 July 2013 – 30 June 2014 9.25%

1 July 2014 – 30 June 2015 9.5%

1 July 2015 – 30 June 2016 10%

1 July 2016 – 30 June 2017 10.5%

The Federal Government has introduced draft legislation to delay the increase in the superannuation rate to 9.5% from 1 July 2014 to 1 July 2016. Although this is not yet confirmed, it is something to be aware of when planning for the coming financial year.

Why does the superannuation rate change in the future?

The superannuation rate changes as the Federal Government implemented changes to help Australian work save more for their retirement. This is a staggered increase moving to 12% from 1 July 2019.

What this means for small business owners is that if their employees are on a fixed package, the employee bears the risk of the superannuation rate increase as more of their package goes to superannuation with less in their pocket. However, if the small business has employees on an hourly rate, they will bear the additional cost of those superannuation increases as superannuation is often an addition to the hourly rate.

When do I need to make superannuation contribution payments for my employees?

Super guarantee contribution payments for employees need to be made by the 28th day of the month after quarter end i.e. for the March quarter that has just passed, payment of superannuation contributions for employees needs to be made at the latest by 28 April. If payments are made after this date, you are required to lodge a Superannuation guarantee charge statement – quarterly with the ATO and pay a super guarantee charge to them. You also do not receive the benefit of the superannuation contributions as a tax deduction so make sure you pay on time.

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