According to Australian legislation employers are obliged to make a super contribution to a complying super fund on behalf of the employers.
Employers are obliged to make at least 4 super guarantee payments to the employee super fund each year.
These contributions are currently at 9 percent phased to be gradually increased to 12 percent. It started in 1988 when Paul Keating decided to give 3 percent national wage raise in the form of superannuation contribution paid by employers. Currently, the minimum percentage employer needs to contribute has raised to 9.5% and is expected to grow further in future.
The following is the table showing superannuation increase through the years.
|1992-93||3 / 4|
|1993-94||3 / 5|
|1994-95||4 / 5|
|1995-96||5 / 6|
|2025-26 and subsequent years||12|
The following people are not eligible for an employer super guarantee contribution
- Employees whose are is less than 18 years
- Employees who work less than 30 hours or fewer per week
- Employees who earn less than $450 per month
- Members of the Army, Navy or Air Force Reserve
- Employees who earn less than $450 per month.