Your not-for-profit organisation must provide its eligible employees with:
a minimum level of super contributions by the quarterly cut-off date
a choice of super fund.
If you fail to do this, you will need to:
report to us by lodging a Superannuation guarantee charge statement – quarterly
pay the super guarantee charge (SGC).
Organisations that are income tax exempt are not exempt from the superannuation guarantee legislation.
Most employees are covered by the super guarantee legislation. It covers those who are full time, part time or casual. It includes company directors, some artists, sportspeople and certain independent contractors.
Exceptions include employees who are:
paid less than $450 (before tax) in any calendar month – super does not have to be provided for that month
non-residents paid solely for work done outside Australia
under 18 years old and employed for no more than 30 hours per week.
Paying super
You must provide a minimum amount of super contributions for your employees. This is the current super guarantee rate of each employee's ordinary time earnings.
Employee contributions do not count towards the employer's super guarantee obligations.
Employers must pay contributions at least quarterly, to either a:
complying super fund
retirement savings account.
Where you send contributions and associated information electronically, you must make payments using SuperStream.
Table: Super quarters and cut-off and due dates
Super guarantee charge (SGC)
You must lodge a Superannuation guarantee charge statement and pay the SGC to us if you did not:
pay the minimum level of super contributions for your employees by the quarterly cut-off date
meet your choice of super fund obligations for the quarter.
The SGC includes the shortfall between what you should have paid (now calculated on all salary and wages) and what you actually paid. You also pay administration and nominal interest components.
If you make sufficient super contributions for your eligible employees by the relevant cut-off dates, they are generally tax deductible. However, the SGC is not tax deductible.
If you made a late super payment to an employee's super fund, you may be able to use it to:
apply the offset to reduce the shortfall and nominal interest component of the SGC
pay super in the current quarter
put the payment towards future super payments (limited to a period no more than 12 months from the beginning of the quarter).
Choice of super fund
You must offer eligible employees a choice of super fund. Provide each new eligible employee with a Superannuation (super) standard choice (NAT 13080) form. Give this to them within 28 days of their start date. They can nominate a fund to receive their employer super contributions.
From 1 November 2021, if you have new employees start you may have an extra step to take to comply with the choice of fund rules if they don’t choose a super fund. You may now need to request their stapled super fund details from us.
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