Employers
The trouble with retirement is that you never get a day off.
Super regulations
Breaking down the barriers
For employers, the superannuation regulatory environment can sometimes be complicated. At Quadrant, we are committed to making superannuation administration as easy as possible by keeping you updated on legislative changes as they arise. We will let you know of any legislative changes that will directly affect you and we will break down the language barriers so you fully understand what's involved.
Superannuation Guarantee (Administration) Act 1992
Under the superannuation guarantee legislation, employers must contribute a minimum percentage of salary into superannuation. Under the superannuation guarantee legislation employer contributions must be made promptly and there are penalties for late payments.
Superannuation guarantee contributions
While some employers participating in Quadrant have an agreement in place to pay additional contributions, the minimum level of superannuation guarantee contribution is 9% of each eligible employee's earning base.
Your employees' earning base is their ordinary times earnings. Ordinary time earnings are generally what your employees earn for their ordinary hours of work including;
- Over award payments
- Commissions
- Allowances
- Paid leave
Refer to the Australian Taxation Office website for further information on ordinary time earnings.
Quadrant's Defined Benefits and Accelerated Benefits
Funds have specific contribution levels as specified below:
Defined and Accelerated Benefits fund
Under Quadrant's trust deed, the minimum contribution levels are 9.5% (employer contribution) and 6% (member contributions) for members of the Quadrant Defined Benefits fund and Quadrant Accelerated Benefits fund.
Hobart City Council Defined Benefits fund
Contributions are made in accordance with your category of membership in the fund. Please contact us or contact your pay officer for further information.
Launceston City Council Defined Benefits fund
Contributions are made in accordance with your category of membership in the fund. Please contact us or contact your pay officer for further information.
RACT Defined Benefits fund
Contributions are made in accordance with your category of membership in the fund. Please contact us or contact your pay officer for further information.
Who is not covered by superannuation guarantee legislation?
Employers are not required to make superannuation guarantee contributions for:
- Employees earning less than $450 in a calendar month
- Part-time employees under 18
- Employees over the age of 70
- Some domestic employees
- Non-resident employees holding certain visas
When do contributions have to be paid?
Employer contributions
Under the superannuation guarantee legislation (section 64 of SIS Act), employer contributions must be made at least quarterly as shown in the table below. There are penalties for late payments.
Quarter | Cut off dates for contributions |
| 1 July - 30 September | 28 October |
| 1 October - 31 December | 28 January |
| 1 January - 31 March | 28 April |
| 1 April - 30 June | 28 July |
Additionally, late or infrequent payment of contributions may adversely affect the member's account.
Member contributions
By law (section 64 of SIS Act), all member contributions must be paid to the superannuation fund within 28 days from the end of the month that it was deducted from the employee's salary.
Tax File Numbers
The Federal Government's Tax File Number laws generally require employers to pass an employee's Tax File Number to their nominated superannuation fund for superannuation purposes.
Your Tax File Number responsibilities are to:
- Accept Tax File Numbers from your employees
- Respect the privacy of an employee who quotes you their Tax File Number
- Pass the Tax File Number on when you make a contribution.
An employee is not obliged to provide their Tax File Number to you.
Reportable Employer Superannuation Contributions
If you have some employees who are salary sacrificing part of their salary into super, this may need to be reported as a 'Reportable Employer Superannuation Contribution' (RESC). Non wage remuneration (such as amounts salary sacrificed) are included in income test to determine eligibility for a range of financial assistance programs such as family tax benefits and child support.
For the 2011/2012 financial year employers will be required to report RESCs in your PAYG annual withholding report and in your employees' PAYG payment summaries.
Amounts required under Superannuation Guarantee legislation and other compulsory superannuation arrangements will not be RESCs.
For further information about superannuation regulations you can also contact
