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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FOR ADVISER USE ONLY

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