SG contributions must be made on employee's ordinary time earnings (OTE) which is the amount an employee earns during ordinary hours of work. It will include elements like commissions, shift-loadings and allowances but not overtime payments.
Calculating SG contributions
You're required to calculate and pay employee SG contributions quarterly-that's every three months for each employee.
To calculate how much you'll need to pay simply multiply an employee's OTE for the quarter by the current SG contributions rate of 9.25% and pay the amount into the employee's complying super fund (and within 28 days of the end of that quarter).
After 1 July 2014 you'll need to use the increased SG contributions rate of 9.50% when calculating your quarterly SG contribution payments.
If you back-pay salary or wages to a former employee you'll also have to pay SG contributions on the back-pay amount.
It was announced in the May 2014 Federal Budget that the government proposes to keep the SG rate at 9.50% until 1 July 2018. It will then rise to 10% and by 0.25% each year thereafter as outlined in the table below.
Please note that keeping the SG rate steady at 9.50% until 2018/2019 is only a proposal. Current legislation stipulates that the SG rate will increase to 10% next July. We will keep you informed if this legislation is passed.
|Financial Year||Rate (%)|
The Government's new SuperStream legislation aims to improve efficiency.