Super is money you pay for your workers to provide for their retirement.

Generally, if you pay an employee $450 or more before tax in a calendar month, you have to pay super on top of their wages.

The minimum you must pay is called the super guarantee (SG):

• the SG is currently 9.5% of an employee’s ordinary time earnings
• you must pay the SG at least four times a year, by the quarterly due dates
• you must pay and report super electronically in a standard format, ensuring you meet SuperStream requirements
• your super payments must go to a complying super fund – most employees can choose their own fund
• if you don’t pay the SG on time, you may have to pay the super guarantee charge.

Working out if you have to pay super

Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay them super guarantee (SG) on top of their wages.

If your employee is under 18 or is a private or domestic worker, such as a nanny, they must also work for more than 30 hours per week to qualify. For example, you will have to pay them super on top of their wages for each week that the employee has worked more than 30 hours.

You have to pay super for some contractors, even if they quote an Australian business number (ABN).

You pay super regardless of whether the employee:

• is full-time, part-time or casual
• receives a super pension or annuity while still working – including those who qualify for the transition-to-retirement measure
• is a temporary resident, such as a backpacker or a working holiday maker – when they leave Australia, they can claim their super through the Departing Australia superannuation payment (DASP) program
• is a company director
• is a family member working in your business – provided they are eligible for SG.

Domestic workers

If you engage someone to do work of a domestic or private nature for 30 hours or more per week and pay them $450 or more (before tax) in a calendar month, you have to pay super for them.

‘Domestic or private’ means work relating personally to you (not to a business of yours), or work relating to your home, household affairs or family – such as a nanny, housekeeper or carer.

If you use funds from the National Disability Insurance Scheme (NDIS) to engage a carer or other domestic help, you may have to pay super for them. This only affects people who choose to manage their NDIS plan themselves.

When you don’t have to pay super

You don’t have to pay super guarantee (SG) for:

• non-resident employees you pay for work they do outside Australia
• some foreign executives who hold certain visas or entry permits (phone us on 13 10 20 for information)
• members of the army, naval or air force reserve for work carried out in that role
• employees who opt out of receiving super if you’re covered by an SG employer shortfall exemption certificate in relation to the employee for the quarter
• employees temporarily working in Australia who are covered by a bilateral super agreement – you must keep a copy of the employee’s certificate of coverage to verify the exemption.

If you’re a non-resident employer, you don’t have to pay super for resident employees for work they do outside Australia.