Mandated employer contributions

Technical resource

Mandated employer contributions are contributions by, or on behalf of an employer that are equal to the contributions made in relation to the member.

Information for advisers only.

An employer may be required to make mandated employer contributions for the benefit of eligible employees. Mandated employer contributions are contributions by, or on behalf of an employer that are equal to the contributions made in relation to the member that:

  • reduce the employer’s potential liability to the Superannuation Guarantee (SG) Charge
  • are payments of the SG shortfall components
  • are contributions to satisfy the employer’s obligation to make contributions under an award or agreement certified by an industrial authority (often referred to as award contributions).

Since 1 July 2013, employers are now liable to pay SG for all eligible employees. There are some employees that are excluded from this definition (non-exhaustive):

  • Those under 18 years of age, unless they work more than 30 hours in any week
  • Domestic or private workers providing services to your home, household affairs or family such as housekeeper, nanny or carer, unless they work more than 30 hours in any week
  • Employees who have opted out of receiving SG and the employer is covered by an SG employer shortfall exemption certificate for the quarter.

Generally, employers are only required to pay SG on an employee’s ordinary time earnings up to the ‘maximum contribution base’. For the 2023/24 financial year this is $62,270 per quarter.

Increases to the Super Guarantee

The SG rate is increasing progressively from 11% to 12% by 2025. The incremental increases are outlined in the table below.

Period SG rate (Charge %)
1 July 2023 - 30 June 2024 11%
1 July 2024 - 30 June 2025 11.5%
1 July 2025 - onwards 12%

Next: Work test exemption for recent retirees aged 65 to 74

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This publication is current as at 01 July 2023 and has been prepared by BT Financial Group , a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (“BTFG”), which is part of the Westpac group of companies (Westpac Group). This document has been prepared for the information of financial advisers only and must not be copied, used, reproduced or otherwise distributed or made available to any retail client or third party, or attributed to BTFG or any other company in the Westpac Group. The information contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. This publication has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this publication, consider its appropriateness to your clients, having regard to their objectives, financial situation or needs. Any taxation information contained in this publication is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual client’s situation may differ, and your clients should seek independent professional taxation advice on any taxation matters. Any graph, case study or example contained in this publication is for illustrative purposes only, and is not to be construed as an indication or prediction of future performance or results. While the information contained in this publication may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of BTFG or any member of the Westpac Group that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and (b) no member of the Westpac Group is in any way liable to you (including for negligence) in respect of any reliance upon such information.

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