1 August 2024
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.
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.
1. Super Guarantee Rate:
2. Eligibility:
1. Select a Default Super Fund:
2. Offer Choice of Super Fund:
3. Provide Tax File Number (TFN) to Super Fund:
4. Electronic Payments Using SuperStream:
Employers must pay super contributions at least four times a year. The due dates for each quarter are:
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 is the standard for processing superannuation data and payments electronically. Employers must:
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) 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.
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.
Sole traders and partners are not required to make super contributions for themselves, but it is recommended as a means of saving for retirement.
1. Super Guarantee Eligibility:
2. Accurate Classification:
3. Timely Payments:
4. Record Keeping:
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.
*Retinue’s (ABN 66 658 618 449) payroll service includes the processing of hours and wages rates provided by you. We do not determine award rates for your employees or provide advice on the correct employment status of your employees. It is your responsibility to ensure that your employees are paid correctly and we recommend obtaining advice from specialised employment relations experts.
Protection is only provided for ATO investigations notified to us during the period which you are a client and relating to any tax returns or lodgements prepared by us. Fines includes any penalties and interest that may result from any errors made by us but does not include any additional tax liability that may result from an amended lodgement.
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