Super Guarantee Rules for 24/25: A Guide For Small Business

As a small business owner, keeping up with changes in superannuation regulations is crucial. This is not just to ensure compliance and avoid penalties; it also keeps your employees’ nest egg secure.  

The superannuation guarantee (SG) is an essential aspect of employee remuneration— requiring employers to contribute a minimum percentage of their employees’ earnings to their superannuation. This guide outlines the Super Guarantee rules for the 2024/25 financial year and helps you navigate the updates effectively. 

Understanding Superannuation 

Superannuation is a retirement savings program where employers contribute a portion of their employees’ earnings to a nominated super fund. The primary goal of superannuation is to provide financial security for employees in retirement. The superannuation guarantee (SG) is the mandatory minimum amount employers must contribute. 

Key Superannuation Requirements for Employers 

1. Super Guarantee Rate: 

• For the financial year 2024/25, the SG rate is 11.5% of an employee’s ordinary time earnings (OTE). This rate will increase to 12% from July 1, 2025.

2. Eligibility: 

• The SG applies to all employees, including full-time, part-time, and casual workers, regardless of their pay level. 

• Specific rules apply to employees under 18 and domestic or private workers. 

Setting Up Super for Your Business 

1. Select a Default Super Fund: 

• Choose a default super fund for your employees who do not select their own super fund.

2. Offer Choice of Super Fund: 

• Provide new employees with a standard choice form to choose their super fund.

3. Provide Tax File Number (TFN) to Super Fund: 

• Submit the employee’s TFN to their super fund within 14 days of receiving their TFN declaration form.

4. Electronic Payments Using SuperStream: 

• Use SuperStream to pay super contributions electronically in a standard format, ensuring compliance and streamlining the process. 

Quarterly Due Dates for Super Contributions 

Employers must pay super contributions at least four times a year. The due dates for each quarter are: 

• 1st Quarter: 28 October 

• 2nd Quarter: 28 January 

• 3rd Quarter: 28 April 

• 4th Quarter: 28 July 

If a due date falls on a weekend or public holiday, the payment must be made by the next business day. Missing these deadlines can result in penalties. 

SuperStream Compliance 

SuperStream is the standard for processing superannuation data and payments electronically. Employers must: 

• Send all super data electronically, including employee details and the amount being paid. 

• Make contribution payments electronically. 

• Link data and money with a unique payment reference number. 

• Ensure data and payments are sent on the same day. 

Options to meet SuperStream requirements include upgrading your payroll software, using a service provider, or consulting your super fund for advice.

Single Touch Payroll (STP) 

Single Touch Payroll (STP) is mandatory for employers with employees. STP-enabled software sends payroll information, including salaries, wages, PAYG withholding, and superannuation, to the ATO each time employees are paid.

The Small Business Superannuation Clearing House (SBSCH) 

For small businesses with 19 or fewer employees or an annual turnover of less than $10 million, the SBSCH offers a free service to make SG contributions. This service allows you to pay all super contributions online in one payment, ensuring compliance with SuperStream. 

Superannuation for Sole Traders and Partners 

Sole traders and partners are not required to make super contributions for themselves, but it is recommended as a means of saving for retirement. 

Common Super Obligations 

1. Super Guarantee Eligibility: 

• Ensure all workers, including temporary residents and part-time employees, are covered by SG.

2. Accurate Classification: 

• Correctly classify workers to avoid outstanding tax and super obligations.

3. Timely Payments: 

• Make super contributions by the due dates to avoid the super guarantee charge (SGC) and associated penalties.

4. Record Keeping: 

• Keep records of super contributions for each employee for a minimum of five years as evidence of compliance. 

Staying updated with superannuation regulations is a way for small business owners to ensure their employees’ future is comfortable. The 2024/25 Super Guarantee rules emphasise timely and accurate contributions, employee fund choice, and the use of electronic systems for efficiency.  

For more information or assistance, contact our team at 1800 861 566. We are here to help you navigate these requirements.