Superannuation Guarantee

What is superannuation?

Superannuation (commonly called ‘super’) is a compulsory retirement savings system in which employers make regular contributions on behalf of their employees. These funds are held in a nominated super fund and are intended to support employees financially when they retire. 

Under the Super Guarantee (SG) legislation, employers are required to contribute 11.5% of an employee's ordinary time earnings into their nominated super fund. The rate is legislated to increase to 12% on 1 July 2025.

Who gets super?

Employees aged 18 and over are eligible for super contributions. Employees under 18 are also eligible if they work more than 30 hours per week. This applies to full time, part time and casual employees. Contractors are generally responsible for making their own super contributions. However, some contractors may be entitled to Super Guarantee contributions from the engaging business — particularly where they are engaged primarily for their labour. Check the ATO's guidelines to confirm your obligations.

For more information, visit the Fair Work website's page on tax and superannuation. here.