Eligibility requirements for superannuation contributions
It is important to ensure that you are entitled to receive superannuation contributions before making the relevant inquiries.
Your employer must pay superannuation contributions of 9.5% of your ordinary time earnings when:
- You are over 18 years old and are paid $450 or more before tax in a month; or
- You are under 18 years old, work more than 30 hours a week and are paid $450 or more before tax in a month
Please be aware that this obligation is imposed on your employer if you are a full-time, part-time or casual employee.
Steps to ensure that your superannuation is paid
You have the right to ensure that your superannuation is being paid by your employer. There is dedicated Commonwealth legislation, the Superannuation Guarantee Charge Act 1992 (Cth) which imposes a charge on employers who do not contribution the required amount of employee superannuation.
There is also specific protection for employees covered by modern awards. Under section 149B of the Fair Work Act 2009 (Cth) every modern award “must include a term that requires an employer covered by the award to make contributions to a superannuation fund for the benefit of an employee covered by the award…..”
Before beginning this process, it is important to know if there is an award or registered agreement that covers your employment. This information may be contained in your contract of employment.
Step 1- Check your payslip
Your payslip may contain information about your super fund.
Step 2- Ask your employer.
It is important to ask your employer the following questions:
- How often are you paying my superannuation?
- Which fund are you paying my superannuation into?
- How much are they paying?
You are entitled to superannuation contribution of 9.5% of your ordinary time earnings. Please ensure that your employer is contributing the correct amount.
Your superannuation contributions are required to be paid quarterly. These contributions must be paid on 28 January, 28 April, 28 July and 28 October each year.
Step 3- Contact your super fund
If you have been able to ascertain the name of your superfund. You can call them to confirm whether your employer has been paying your super contributions.
You may be sent regular statements by your superfund. These statements may contain the relevant information to determine if your employer is paying the correct entitlements.
Step 4- Contact the Australian Tax Office (ATO)
You may be required to contact the ATO if you still believe that your employer is not complying with their superannuation obligations. The ATO contains a handy online tool entitled the employee superannuation guarantee calculator tool. This online calculator tool allows you to determine if your employer is paying enough superannuation.
The ATO will determine from your enquiry on how to investigate the matter.
Likewise, if you become aware that your employer is not contributing any amount to your superannuation you should contact the ATO.
Penalties
If your employer fails to pay their required contributions they may be liable for a non-deductible charge known as the Superannuation Guarantee Charge (SGC). Please note there are various other penalties which may be imposed on your employer.