Is my employer paying my super correctly in Australia?
Yes, your employer should be paying superannuation contributions correctly on top of your ordinary time earnings if you are eligible. These payments are legally mandated to your chosen super fund.
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How it works in practice
Understanding Superannuation Guarantee
In Australia, most employees are entitled to superannuation contributions from their employer. This is known as the Superannuation Guarantee (SG). Your employer must pay a percentage of your ordinary time earnings (OTE) into a super fund on your behalf. This rate is currently 11% (for the 2023-24 financial year) and is scheduled to gradually increase.
Eligibility and Payment
You are generally eligible for super contributions if you are 18 years or older and earn at least $450 (before tax) in a calendar month, or if you are under 18 and work more than 30 hours a week and earn over $450 in a month. Employers must make these contributions at least quarterly. Failure to pay correctly or on time can result in penalties for the employer and underpaid super for the employee.
Checking Your Super
It is crucial to regularly check your super account. You can do this by looking at your payslips, checking statements from your super fund, or logging into your myGov account to see all your super accounts and contributions made by employers. This helps ensure you receive your full entitlements.
Important exceptions
There are a few exceptions where your employer might not need to pay super. You might not be eligible if you are under 18 and work 30 hours or less per week, regardless of how much you earn. Individuals paid for private or domestic work for less than 30 hours per week are also exempt. Furthermore, if you are a non-resident paid for work done outside Australia, superannuation guarantee may not apply. Finally, high-income earners who have reached their concessional contribution cap may not receive further employer contributions for a period, but this is less common for standard employees.
What you should do now
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Understand your eligibility: Confirm if you meet the criteria for superannuation guarantee payments, such as age and earnings thresholds.
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Check your payslips and super fund statements: Ensure that superannuation contributions are listed on your payslips and that the correct amounts are appearing in your super fund account at least quarterly.
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Use ATO online services: Log into your myGov account to access the Australian Taxation Office (ATO) online services and view your consolidated super information, including employer contributions.
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Contact your employer: If you suspect underpayment or non-payment, first discuss it with your employer, as it might be an administrative error.
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Report to the ATO: If your employer fails to rectify the issue, report the unpaid super to the ATO, who can investigate and take action on your behalf.
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