Page 15 - VACC Membership Kit 2023

Industrial Relations Services (cont.)
Superannuation Payments
As an employer you are required to make superannuation guarantee contributions on behalf of all eligible employees each quarter. Superannuation is money you pay for your employees to provide for their retirement. The minimum you must pay is called the superannuation guarantee charge (SGC).
It is important to note:
• The SGC is currently 10.5 per cent of an employee’s ordinary time earnings. (On 1 July 2023,
the super guarantee rate will increase from 10.5 per cent to 11 per cent)
• The SGC must be paid at least four times per year, by the quarterly due dates to avoid penalty.
• Payment must be made into a complying super fund; for most employees a ‘stapled fund’ will apply unless the employee nominates a different fund (see below).
• In general, all employees are eligible, including full-time, part-time and casual employees. However, employees aged under 18 years of age must work more than 30 hours per
week (unless covered by agreement stating otherwise) in order to be entitled to receive compulsory superannuation contributions (Refer to Fact Sheet 3.2 Superannuation Payments).
Superannuation Stapling
From 1 November 2021, employees automatically keep their existing super fund (if they have one) when they start a new job. This super fund ‘stapling’ applies to new employees unless the employee nominates a specific fund (using the Standard Choice Form). Employers must contact the Australian Taxation Office (ATO) to see if the employee has an existing ‘stapled’ super fund. If they do, payments must be made to this account. Employers can request your employee’s stapled super fund details from the ATO if you submit a Tax file number declaration or Single Touch Payroll (STP) pay event, which identifies that you have an employment relationship or link to your employee.
You should provide all new employees with the ATO’s Superannuation Standard Choice Form when they commence employment with you. Please download it from the ATO’s website or call the ATO on 131020.