What is compulsory super?Compulsory super, called the Superannuation Guarantee or SG, was introduced by the Federal Government in July 1992 to ensure people saved for their retirement. Under the current SG law, your employer must contribute a minimum of 9% of your earnings into a super fund on your behalf. For example, if you earn $100,000 per year, your SG would amount to $9,000 per year. For most people, 9% is based on 'ordinary time earnings', which means earnings for your ordinary hours of work (this may include shift allowances, commissions, paid leave and other benefits depending on your personal situation). Employers must pay SG contributions at least every quarter. People who are not entitled to compulsory super are employees who are:
In addition, if you earn $38,180 or more per quarter ($152,720 per annum), your employer is not obliged to pay SG contributions for you in excess of 9% of $38,180 per quarter. A widely held myth is that compulsory super alone will be enough to provide a comfortable retirement. This may not be the case. The good news is that it’s easy to take control of your super now! Click here to find out if compulsory super will be enough, or use the menu on the left to navigate through other super educational information
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