SG contributions are ‘concessional’ contributions that are taxed at 15%, rather than at the employee’s marginal tax rate. This 15% contributions tax is paid at the time the contribution is paid into a ‘taxed’ fund, or at the time the member withdraws the benefit from an ‘untaxed’ fund.
Find out more about the Superannuation Guarantee rate.
Employers who fail to make sufficient contributions for their employees become liable for the Superannuation Guarantee charge.
Calculating SG contributions
Show moreFor Australian employees under Commonwealth law, SG contributions are generally calculated as 11.5% of Ordinary Time Earnings (‘OTE’).
Find out more about OTE in the Australian Tax Office’s guide Super for Employers.
For State public sector employees, SG contributions are generally calculated as 11.5% of a broader range of salary items including OTE.
| Ordinary Time Earnings (OTE) (‘Section 4B’ contributions) | PLUS | Additional items for State workers (‘Section 4C’ contributions) |
|---|
Find out more about the treatment of common allowances for superannuation in the guide How to Calculate Contributions for Public Sector Employees.
Exceptions
This contributions base is used by all State public sector employers except those listed in State Superannuation Regulation 12E who are exempted from the State Superannuation Act 2000. These employers are only required to use OTE as the base for SG contributions, except for contributions to a defined benefit scheme. Find out more about employer exemptions from State superannuation requirements.
Contributions for members of defined benefit schemes
Show moreOTE and SG concepts do not apply directly to members of defined benefit schemes such as the Gold State Super and Pension Scheme administered by GESB or the Fire and Emergency Services Superannuation defined benefit fund. For example:
- superannuation contributions for Gold State Super members are generally calculated on employee payments, except where specifically excluded under State Superannuation Regulation 17A
- superannuation contributions for Pension Scheme members are based on the requirements of section 6(1) of the Superannuation and Family Benefits Act 1938
- the contribution rules for the Fire and Emergency Services Superannuation schemes, the Parliamentary Pension Scheme and the Judges' Pension Scheme are set out under their respective legislation.
Reporting contribution data
Show moreSince 1 July 2017, all WA Public Sector employers have been required to comply at payroll level with the SuperStream standards set out by the Australian Taxation Office.
