Superannuation is a government mandated means of ensuring employees put aside money for their retirement. It is compulsory for employers to comply with Australian superannuation laws.

The amounts that employers are obliged to contribute to each of their employees’ superannuation funds varies. Australian law set out the amounts (if any) that employers are required to contribute into their employees’ superannuation funds. These amounts are calculated as a percentage of the relevant employee’s ordinary time earnings. At present, the prescribed guarantee charge is 9% of the employee’s ordinary time earnings and is payable at least quarterly. The Federal Government has passed legislation increasing the prescribed guarantee charge from 9% to 12% by 1 July 2019.

For those employees governed by awards, the award itself may mandate the percentage of salary to be paid to the employee in superannuation. You should go to the Fair Work Commission or Fair Work Ombudsman websites ( or for further information.

An employer must allow each employee to nominate the fund into which his or her superannuation guarantee charge is contributed.  An employee is allowed to change their nominated fund at least annually.  If an employee doesn’t nominate a preferred fund, the employer may contribute the funds into a default fund.

Employers must keep a record of all superannuation payments made to employees. These records must include the amounts paid, how they were calculated (i.e. calculation formula) and whether a choice of superannuation fund was offered.

Contributing to superannuation is not optional, it is a legal requirement. If you are seeking guidance on your super fund, speak with an business lawyer today.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.
Lachlan McKnight

Get a Free Quote Now

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • We will be in touch shortly with a quote. By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.

Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy