Superannuation and employees

If you’re currently working as an employee in Australia you’re probably entitled to receive superannuation guarantee (SG) contributions, while that is true, SG contributions (contributions from your employer) are only mandatory once you’ve satisfied the minimum conditions.  Below is a list of conditions you must fulfil in order to be eligible to receive SG contributions, it also outlines the obligations your employer has when it comes to paying your super.

1. The 9.5% Super Guarantee Rate

If you’re eligible for SG your employer must pay a minimum rate of 9.5% of your ordinary time earnings.

2. Minimum Earning A Month

You must earn a minimum of $450 in a calendar month.If you complete private or domestic work, for example, work as a private au pair or do cleaning or gardening you must work at least 30 hours and earn the minimum $450 p/month in order to qualify for SG.

3. Receiving super if you’re under 18 years of age

If you’re under 18 you must meet the minimum earning amount per month and in addition, work 30 hours a week.

4. Over 70

There is no age restriction on receiving SG contributions from your employer, so as long as you’re eligible, your super fund can accept these types of contributions.

5. Payment Frequency

Your employer can pay your super as frequently as they like, this could be weekly or monthly however it must be paid at least within 28 day at the end of each quarter.If your employer has not paid your super in over 3 months you can lodge a complaint to the Australian Taxation Office who will lodge an investigation and will ensure you are back paid any unpaid super guarantee contributions.

If you satisfy the above conditions, then happy retirement saving.  If you’re unsure whether or not your employer has contributed to your super fund first check your pay slip, then give your super fund a call to check recent contribution.  If you don’t find the answer you’re looking for, the ATO will help you out with the next steps of tracking these payments down.  Most employees are able to nominate their choice of fund to receive contributions from their employers, you may like to discuss this option with payroll.

LifeTime Financial Group are specialist (holding appropriate accreditations)advisors who are ideally positioned to assist you in selecting and then managing your retirement funds.

Would you like to discuss your personal position further with one of our highly qualified financial planners? Why not call us today on 03 9596-7733.

There is no cost or obligation for our initial conversation/meeting.

Written by Anthony Stedman of LifeTime Financial Group. A leading privately owned Melbourne Financial Planning practice.

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