Understanding the Super Guarantee Surcharge.


Welcome to our comprehensive guide on the Super Guarantee Surcharge. In this blog post, we will delve into the intricacies of this mandatory contribution scheme in Australia. We will explore what the Super Guarantee Surcharge is, how it works, who is affected by it, and the key considerations for both employers and employees. So, let's get started!

Section 1: What is the Super Guarantee Surcharge?

The Super Guarantee Surcharge is a compulsory contribution that employers in Australia are required to make on behalf of their eligible employees. It is designed to boost retirement savings by ensuring that a percentage of an employee's earnings is directed toward their superannuation fund.

Section 2: How does the Super Guarantee Surcharge work?

The Super Guarantee Surcharge operates by mandating that employers contribute a specific percentage of their employees' ordinary time earnings to their superannuation fund. The current minimum contribution rate is 9.5% of an employee's earnings.

These contributions are made in addition to an employee's salary or wages and are separate from any voluntary contributions they may choose to make. The purpose of the Super Guarantee Surcharge is to ensure that employees receive adequate retirement savings throughout their working lives.

Section 3: Who is affected by the Super Guarantee Surcharge?

Both employers and employees are impacted by the Super Guarantee Surcharge, albeit in different ways.

3.1 Employers:

  • All employers in Australia are required to comply with the Super Guarantee legislation.
  • Employers must contribute the minimum percentage (currently 9.5%) of their employees' eligible earnings.
  • Failure to meet this obligation can result in penalties and legal consequences.

3.2 Employees:

  • Eligible employees are entitled to receive the Super Guarantee contribution from their employer.
  • The contribution is calculated based on the employee's ordinary time earnings.
  • Employees have the right to choose their superannuation fund and can make additional voluntary contributions if desired.

Section 4: Key considerations for employers

Employers need to be aware of several important factors when it comes to fulfilling their obligations under the Super Guarantee Surcharge scheme.

4.1 Eligible employees:

  • Employers must determine which employees are eligible for the Super Guarantee contribution.
  • Generally, employees aged 18 or above and earning at least $450 per month are eligible.
  • Some employees, such as non-resident employees and those paid under certain visa arrangements, may be exempt.

4.2 Contribution calculation:

  • Employers must accurately calculate the Super Guarantee contribution for each eligible employee.
  • The contribution is based on ordinary time earnings, which includes salary, wages, commissions, allowances, and bonuses.

4.3 Deadlines and payment methods:

  • Employers must make Super Guarantee contributions every quarter.
  • The due dates for payment are typically 28 days after the end of each quarter.
  • Employers can choose from various payment methods, including electronic funds transfer (EFT), BPAY, or by using a clearing house.

4.4 Record-keeping:

  • Employers must maintain accurate records of Super Guarantee contributions made for each employee.
  • Records should include details such as employee information, contribution amounts, and payment dates.
  • These records should be kept for at least five years.

4.5 Penalties for non-compliance:

  • Employers who fail to meet their Super Guarantee obligations may face penalties from the Australian Taxation Office (ATO).
  • Penalties can include fines, interest charges, and legal action in severe cases.

Section 5: Key considerations for employees

Employees should also be aware of certain aspects related to the Super Guarantee Surcharge scheme to ensure they receive their entitlements and maximize their retirement savings.

5.1 Checking contributions:

  • Employees should regularly check their payslips to ensure that their employer is making the correct Super Guarantee contributions.
  • It is important to monitor these contributions to ensure compliance with the minimum requirement.

5.2 Choosing a superannuation fund:

  • Employees have the right to choose their superannuation fund.
  • It is crucial to select a fund that aligns with individual financial goals and preferences.
  • Factors such as fees, investment options, and performance should be considered when making a decision.

5.3 Voluntary contributions:

  • In addition to the mandatory Super Guarantee contribution, employees can make voluntary contributions to boost their retirement savings.
  • These contributions can be made through salary sacrifice arrangements or personal contributions.
  • Employees should consider consulting with a financial advisor to determine the most suitable strategy for their circumstances.


The Super Guarantee Surcharge plays a vital role in ensuring that Australians have sufficient retirement savings. Employers must comply with their contribution obligations, while employees should monitor their entitlements and make informed decisions about their superannuation fund. By understanding how the scheme works and its implications, both employers and employees can navigate the complexities of the Super Guarantee Surcharge effectively and secure a brighter future in retirement.