Under the Superannuation Guarantee (SG), employers must contribute the equivalent of a certain percentage of an employee’s earnings each year to the superannuation fund of their choice. Compulsory SG contributions are currently set at 9.5%. From 1 July 2021, they will begin to increase progressively to 12% by 1 July 2025. Find out more about the Superannuation Guarantee rate.
SG contributions are ‘concessional’ contributions that are taxed at 15%, rather than at the employee’s marginal tax rate. This 15% contributions tax is paid at the time the contribution is paid into a ‘taxed’ fund, or at the time the member withdraws the benefit from an ‘untaxed’ fund.
Employers who fail to make sufficient contributions for their employees become liable for the Superannuation Guarantee charge.
For Australian employees under Commonwealth law, SG contributions are generally calculated as 9.5% of Ordinary Time Earnings (‘OTE’).
Find out more about OTE in the Australian Tax Office’s guide Super for Employers.
For State public sector employees, SG contributions are generally calculated as 9.5% of a broader range of salary items including OTE.
Find out more about the treatment of common allowances for superannuation in the guide How to Calculate Contributions for Public Sector Employees.
This contributions base is used by all State public sector employers except those listed in State Superannuation Regulation 12E who are exempted from the State Superannuation Act 2000. These employers are only required to use OTE as the base for SG contributions, except for contributions to a defined benefit scheme. Find out more about employer exemptions from State superannuation requirements.
OTE and SG concepts do not apply directly to members of defined benefit schemes such as the Gold State Super and Pension Scheme administered by GESB or the Fire and Emergency Services Superannuation defined benefit fund:
All WA Public Sector employers are required to comply at payroll level with the SuperStream standards set out by the Australian Taxation Office.
The State’s policy on the implementation of SuperStream data and payment standards by WA Public Sector Employers is set out in the State Policy on SuperStream Data Standards.