Simplifying Super: Your Obligations as a Business Owner 

Superannuation can seem like a complex beast, especially for busy small business owners. But understanding your obligations is crucial to ensure you’re complying with the law, supporting your employees’ retirement savings, and avoiding hefty penalties. Let’s break it down and simplify your super responsibilities. 

1. It’s Not Optional: The Super Guarantee 

First and foremost, providing superannuation for eligible employees isn’t a choice; it’s the law. The Superannuation Guarantee (SG) requires you to pay a minimum percentage of your employees’ ordinary time earnings into their chosen super fund. 

• Current Rate: The SG rate is currently 11.5% (as of July 1, 2024) and is scheduled to increase gradually to 12% by July 1, 2025. 

• Who’s Eligible: Generally, if you pay an employee they’re likely eligible for super, regardless of their age, (except an employee who is under 18 in which case you only need to pay super for them if they work 30 hours per week or more), employment status (full-time, part-time, or casual), or how long they’ve been with you. 

2. Stay on Top of Payments: Key Dates 

Meeting your superannuation obligations means paying on time, and that requires knowing the key dates: 

• Quarterly Payments: Super payments are generally due quarterly. The deadlines are: 

• Quarter 1 (July – Sept): October 28 

• Quarter 2 (Oct – Dec): January 28 

• Quarter 3 (Jan – Mar): April 28 

• Quarter 4 (Apr – June): July 28 

• Missed Payments = Superannuation Guarantee Charge: If you miss a payment deadline, you’ll be liable for the Superannuation Guarantee Charge (SGC). This includes not only the unpaid super but also interest and an administration fee. Ouch! 

3. Choice is Key: Employee Choice of Fund 

Your employees have the right to choose their own super fund. Provide them with a Standard Choice Form within 28 days of them starting employment. If they don’t choose a fund, you can pay their super into your business’s default fund or the employees default fund. 

4. Keep Accurate Records: It’s Essential 

Maintaining accurate records is crucial for meeting your super obligations. Keep detailed records of: 

• Employee earnings 

• Superannuation contributions made 

• Payment dates 

• Choice of fund forms 

5. Embrace Technology: Simplify the Process 

Managing superannuation doesn’t have to be a headache. There are tools and resources available to simplify the process: 

• Superannuation clearing houses: These services allow you to make super payments for all your employees in one transaction. 

• Accounting software: Many accounting software packages have built-in features for managing superannuation payments. 

• ATO online services: The ATO website provides information and tools to help you understand and meet your super obligations. 

6. Seek Expert Advice: When in Doubt 

Superannuation rules and regulations can be complex. If you’re unsure about your obligations or need assistance, don’t hesitate to seek professional advice from an accountant or financial advisor. 

Superannuation: It’s Not Just an Obligation 

While meeting your superannuation obligations is a legal requirement, it’s also an opportunity to support your employees’ financial futures and foster a positive work environment. By understanding your responsibilities and implementing efficient processes, you can simplify superannuation and focus on what you do best – running your business.