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What is the superannuation guarantee (SG)?

April 26, 2017guarantee SG Superannuation

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What is the superannuation guarantee (SG)?

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Employers in Australia are required by the superannuation guarantee (SG) legislation to make contributions for most employees to a complying super fund. The amount contributed by employers is equal to 9% of an employee’s earnings base, based on ordinary time earnings (OTE). From 1 July 2008, all employers must use OTE as the earnings base for all eligible employees. Financial penalties are payable to the Australian Tax Office if SG amounts are not paid to a super fund by 28th day after the end of the relevant quarter (i.e. 28 October, 28 January, 28 April and 28 July). HESTA expects contributions on behalf of your employees to be made monthly. Contributions can be made more frequently (eg fortnightly), or quarterly by agreement. Contact us to change your current payment arrangements.