Skip to content

Superannuation payments for new employees

Set up super payments confidently and correctly

On this page

  • Provide proper options to new staff
  • Find forms to set up super for new staff
  • Use the ATO calculator to make correct payments

In the 2014-15 Federal Budget, the Treasurer announced the government’s intention to change the schedule for increasing the super guarantee (SG) rate to 12%.  The SG rate increased from 9.25% to 9.5% from 1 July 2014 as currently legislated. The Government amendments to the legislation mean that the rate will remain at 9.5% until 30 June 2021 and then increase by 0.5 percentage points each year until it reaches 12%.  Check ATO website for details.

Set up new employees

Employees can choose their own superannuation fund or retirement savings account.

When you offer your employee a choice of super fund, you must tell them the name of the fund you will pay their super to if they don't choose a fund. You provide this information to your employees by completing section B of the Standard choice form listed below.

Standard super provider choice form

Check the list of complying super funds to find a default fund that's right for your business.

For superannuation purposes the definition of an employee is broad, and therefore in some cases you may have to pay a contractor's superannuation. To help you work out who is eligible, use the Superannuation Guarantee (SG) eligibility decision tool.

Superannuation payments

How much should I pay?

Use the calculator to find the correct amount of super you will need to pay.  You will need to know your employee's income and their chosen super fund.

ATO super contribution calculator

Who do I pay it to?

Super payments for all employees can be made to the Small Business Superannuation Clearing House for businesses with 20 employees or less.  This means that you can pay one lump sum for all employees, even if they are with different super funds.

Small Business Superannuation Clearing House

OR pay this amount to a superannuation fund or retirement savings account at least every quarter. 

There is now a new obligation for employers to send superannuation data and payments electronically, called SuperStream.  It is designed to make superannuation contributions super simple by introducing a new data standard for funds and employers to minimise the myriads of different types of data and payment methods employers had to go through to make contributions for their employees.   

There are a variety of options available for employers to meet the SuperStream requirements from their own payroll, clearing houses, default super funds or assistance from their accountant or book-keeper.

Large and Medium employers (those with greater than 20 employees) have until 31 October 2015 to be using a SuperStream solution and smaller employers (less than 20 employees) have until 30 June 2016.

Keep a record of all contributions made

You will need to keep a record of when and how you reported superannuation contributions to your employees. Special reporting requirements apply to superannuation payments made as fringe benefits or salary sacrifice.

You must also report in writing to your employees the details of the:

  • contributions you've made to their superannuation funds at least once every quarter
  • name of fund
  • employee's account number if known.

Which employees don't you pay super for?

To check the eligibility of payments for employees, you should refer to the ATO website SG Eligibility Decision Tool.

Tax deductions 

You can claim deductions for contributions where the:

  • contribution is to provide super benefits for your employee
  • contribution is made to a complying super fund or Retirement Savings Account (RSA) in the year of income.