Understanding your super responsibilities

Super Guarantee (SG) is a compulsory contribution which all employers need to make on behalf of each of their eligible employees. Employer contributions are paid directly to each employee's nominated super fund, or a default fund on their behalf.

What you need to do

As an employer, the SG legislation requires you to contribute a minimum of 9.5% of an employee’s ordinary time earnings as super. These payments may be claimed as a tax deduction.

Offering employees choice

Choice of Fund legislation allows eligible employees to choose which super fund their contributions are paid into. However if they do not make a choice, you can choose a MySuper compliant product to pay super into on their behalf.

Who is eligible for Choice of Fund?

As an employer you are responsible for identifying which employees are eligible for Choice of Fund.

For those employees who are eligible, you must provide a Standard Choice of Fund Nomination form to them within 28 days of their start date.

Employees can generally choose their super fund if they are:

  • employed under a federal award
  • employed under a former state award, now known as a ‘notional agreement preserving state award’
  • employed under another award or agreement that does not require super contributions, or
  • not employed under any state award or industrial agreement (including contractors paid principally for their labour).

Employees are generally not eligible to choose a super fund if you pay super for them under a:

  • state industrial award
  • preserved state agreement
  • federal industrial agreement such as an Australian Workplace Agreement (AWA)
Or if they are in a defined benefit fund

Enrolling your new employees is easy

Whether your employees are new to Rest or existing Rest members, enrolling new employees online is easy, all you need to do is follow the simple steps below.