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Superannuation plays a critical role for many Australians in preparing and saving for their retirement.

As an Australian worker, you can make personal/voluntary contributions to your super at any time throughout the year and your employer has a legal obligation to contribute regular payments on your behalf.

Many people will use their super alongside any government age pension payments that they are entitled to, to live a more comfortable lifestyle when they stop working.

SUPERANNUATION GUARANTEE (SG)

The Superannuation Guarantee (SG) is an important part of the superannuation system that requires employers to provide sufficient super support to their employees. Employers are obliged to contribute a minimum percentage of each eligible employee’s earnings (ordinary time earnings) to a complying super fund or retirement savings account (RSA).

As an employer contributing to a superannuation fund for your employees, you must:

  • Calculate 9.50% (current rate) of the base earnings for each eligible employee (i.e. those paid at least $450 per month).
  • Pay to a complying fund at least quarterly.
  • Keep records of when, what, and how you reported SGC to your employees.

SUPERANNUATION GUARANTEE CHARGE (SGC)

If the minimum amount of Super Guarantee (SG) is not paid for your employee into the correct fund by the due date, you will need to complete and lodge an SGC Statement – Quarterly (ATO Form NAT 9599) and the applicable SGC paid to the ATO.

This statement will include the unpaid superannuation contribution, an interest charge of 10% per annum and a $20 administration fee for each employee with unpaid superannuation – which is not tax deductible.

Contact us to find out how we can assist you

Planning for your retirement is now more important than ever and your superannuation plays an integral role in preparing for a comfortable retirement.

Should you require our assistance to ensure that your super is optimised and that as an employer you meet the quarterly SG deadlines, please do not hesitate to contact us.

We look forward to working with you to ensure you are on track for a successful and comfortable retirement.

Disclaimer

This information is provided by Arthur Kyriacou & Co. for educational purposes. It does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. In deciding whether to acquire or continue to hold an investment, you should consider the relevant product guide or product disclosure statement.

We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

Arthur Kyriacou & Co. will not be liable for any losses arising from reliance on this information.

For any queries, please contact info@alkfinancialgroup.com.au