Every business with employees has an obligation to pay superannuation contributions on behalf of all eligible employees.

Most employees, whether full-time, part-time or casual, are considered eligible employees under the Superannuation Guarantee legislation.

Under the Superannuation Guarantee legislation employers must provide a minimum level of superannuation payments for employees or pay a tax called the Superannuation Guarantee Charge (SGC).

The minimum superannuation contribution is 9% of base salary. This contribution is in addition to employees’ salaries and wages.

The exceptions are for employees:

• earning less than $450 a calendar month
• 70 years of age or over, or under 18 years of age and working for less than 30 hours a week
• paid to do domestic or private work for under 30 hours per week
• covered by a bilateral superannuation agreement where the employee works temporarily in other countries
• that have vested benefits in excess of their pension reasonable benefit limit (RBL) and elect not to receive any employer contributions.

Employers are required to make superannuation guarantee contributions on behalf of eligible employees at least once each quarter, by the cut off dates of: 28 October, 28 January, 28 April and 28 July. If superannuation contributions are not made by these dates, the business will face penalties.

Employers must also:

• check if any employees are eligible for a choice of complying superannuation fund
• provide eligible employees with a standard choice superannuation form
• pass on employees' tax file numbers to their superannuation fund within 14 days of starting employment or with the first superannuation contribution
• pay superannuation contributions for eligible contractors
• keep records of superannuation payments and employees’ superannuation fund choices.

The Australian Tax Office has resources for Australian business owners with superannuation obligations.

The Australian Government, through Medicare Australia, offers a free superannuation clearing house service to small businesses with less than 20 employees. The service is optional and is designed to reduce red tape and compliance costs associated with meeting superannuation guarantee obligations.