Employers calculating superannuation guarantee amounts saw increases as from 1 July 2008!
The legislation that came into effect from that date means that calculating superannuation guarantee amounts is based on Ordinary Times Earnings (OTE) of staff and sub-contractors that now include –
- performance-related bonuses;
- regular over-award payments;
- commissions; and
- expense allowances,
with obvious consequent effects on these calculations.
The statutory rate remains unchanged at 9%. This rate escalates over time – and will peak around July 2025, at 12%. As from 1 July 2008, the amount to which the statutory rate applies is higher for most employers. We deal with the consequences of making mistakes in these calculations in our article ‘Superannuation Guarantee Charge liability‘. (For updated information as to the relevant ‘statutory rate’ for your calculating superannuation guarantee amounts for employees, refer to the ATO website.)
Note – If you engage sub-contractors in your business and they are principally working for your business and/ or who have to work according to your specific direction and control, you may need to be calculating superannuation guarantee amounts to remit for these people as though you were actually their employer.
If either of these matters are unclear for you, please contact your tax accountant or business adviser to take appropriate advice as to your obligations.
Continuum Financial Planners Pty Ltd experienced team of financial advisers deliver effective Superannuation matters advice. Our team works to the mantra that ‘we listen, we understand; and we have solutions‘. If you have any concerns about providing compliant superannuation guarantee contributions in relation to your employees and/ or your personal superannuation needs, you can make an appointment with one of our experinced advisers, by –
- phoning our office, on 07-34213456, or
- at your convenience, use the linked Book A Meeting facility.
(This article was originally posted by us in September 2008. We occasionally update/ refresh it, most recently in May 2025.)
