The Superannuation Guarantee (SG)
SG is a compulsory contribution which employers need to make on behalf of their eligible employees. These payments may be claimed as a tax deduction in the financial year you make them. The current SG requirement for employers is 9. 5% of employees’ Ordinary Time Earnings.
For more information about SG obligations including payment due dates and data requirements, please read the Employer Handbook.
Choice of fund
Many employees are entitled to choose the fund their employer pays their super into. As an employer, it is your responsibility to ensure that your employees are aware of this choice and to provide them with a Choice of Super Fund (nomination form) where applicable. Once your employee completes this form, you are required to act on this decision and begin making contributions to their chosen fund.
To determine whether an employee is eligible to choose their own super fund visit the Australian Taxation Office (ATO) website or call the ATO employer helpline on 13 10 20.
Default fund status and MySuper
While more and more employees are actively choosing their super fund, many still don’t. Employers need to select a ‘default’ fund – that is, a super fund you choose for employees who do not select a super fund. Not all super funds can be chosen as a default fund. Only funds that adhere to the Government “MySuper” standard are eligible for default status.
QIEC Super was amongst the first super funds in Australia to secure a MySuper product licence from the Australian Prudential Regulation Authority (APRA).
Tax File Numbers (TFN)
Employers are required to provide a new employee’s TFN to QIEC Super within 14 days. If you do not make a contribution for the employee in that period, you may provide the employee’s TFN to QIEC Super at the time of the first contribution after receiving the TFN declaration.
New members joining QIEC Super may provide their TFN on their Member Application Form.
It is an offence not to provide an employee’s TFN to their super fund within the required timeframes and penalties may apply.