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Superannuation Contributions - Made Easy!

Superannuation Guarantee Contributions are confusing for both EMPLOYERS and EMPLOYEES alike.

To help you easily understand and identify your super entitlements and obligations the ATO have recently released three new handy tools.

These tools are easy to use and allow employers and employees alike, the ability to work out who is eligible to be paid super contributions and how much. There is also a tool to report employers failing to pay super contributions (for employees)

  • The eligibility tool works out if you are entitled to super guarantee contributions.

  • The estimate tool calculates your estimated superannuation guarantee amount, based on quarterly earnings.

  • The complaint tool can be used to report employers who are not paying super contributions correctly.

Once you have established your eligibility for Superannuation…

How much Super should I pay / receive…

  • If you’re eligible for super guarantee contributions, at least every three months your employer must pay into your super account a minimum of 9.5% of your ordinary time earnings, up to the ‘maximum contribution base’ (rate current as of 1 July 2014).

  • These payments are classified as employer contributions and count towards your concessional (before-tax) contributions cap.

  • Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave.

  • If you’re a contractor, the minimum super amount should be calculated on the labour component of your contract, if it’s possible to separate it out. Otherwise it should be calculated on the total amount. If you need help calculating your super guarantee entitlement you can use the Estimate my super too

For any questions on Superannuation regardless of whether you are an Employer or Employee please call us on 07 5502 6673, to speak to one of our Qualified Accountants

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