About Superannuation Information from Reckon Accounts

Superannuation Guarantee Act

Superannuation Guarantee Act

The Superannuation Guarantee Act was introduced in 1992 to ensure most employees receive superannuation support from their employers. Under this Act, employers are required to contribute a minimum percentage of an employee’s Ordinary Time Earnings (OTE) to a complying superannuation fund or Retirement Savings Account (RSA).

As of 1 July 2024, the minimum contribution rate is 11.5% of OTE.

Superannuation rates increase annually until they reach 12% by 1 July 2025, in line with legislated changes.

Super guarantee | Australian Taxation Office

Starting 1 July 2026, superannuation contributions must be paid at the same time as salary and wages, not quarterly. This is referred to as Payday Super and is intended to improve compliance and employee retirement outcomes. Employers should begin preparing for this change.

Payday superannuation | Australian Taxation Office

Key Dates

Payment	Due Dates	Comment
Superannuation Fund Payments	Q1 (Jul–Sep): Due by 28 October Q2 (Oct–Dec): Due by 28 January Q3 (Jan–Mar): Due by 28 April Q4 (Apr–Jun): Due by 28 July	Quarterly payments to super funds must be made by these dates.
Superannuation Guarantee Charge Payment	Q1: Due by 28 November Q2: Due by 28 February Q3: Due by 28 May Q4: Due by 28 August	Due dates for late payments that attract the Superannuation Guarantee Charge.

Terms Used

Abbreviation	Meaning of Abbreviation
OTE	Ordinary Time Earnings: Includes payments for ordinary hours worked; used to calculate SG contributions.
SGA	Super Guarantee Act: Legislation mandating employer contributions to superannuation for eligible employees.
SGC	Super Guarantee Charge: A penalty applied when SG contributions are unpaid or late. Includes: Short-fall Nominal Interest Administration Charge
GIC	General Interest Charge: A fee incurred for late SGA payments, applied monthly until payment is made.

Reportable Employer Super Contributions (RESC)

Since July 2009, any pre-tax super contributions exceeding mandatory requirements (e.g. salary sacrifice arrangements) must be reported on employee payment summaries.

For further information, please click here.

Salary Sacrifice

The manner in which salary sacrifice arrangements are handled within an accounting payroll system would depend upon the conditions of employment and the relevant management policy or agreement. How salary sacrifice impacts super calculations depends on how it's configured in Reckon Accounts:

Deduction	Comment
Ticked	SG is calculated on gross pay excluding the salary sacrifice amount (checkbox is ticked in the payroll item wizard).
Unticked	SG is calculated on gross pay including salary sacrifice (checkbox is unticked in the payroll item wizard).

Employer Contributions

These contributions are generally not subject to PAYG withholding. If they are, the amount is added to gross pay before tax is calculated.

Code	Description	PAYG	Comment
SA	SG Contributions (Compulsory)	No	Mandated by the SGA.
CA	Collective Agreement	No	Exceeds legislative minimum as per company-wide agreements.
EA	Employer Additional	No	Used when extra contributions require a separate account.
PR	Productivity Contributions (Award)	Yes	Identified separately for award or union requirements. For example, the union may require the contributions to be shown separately on the payslip.
RC	Redundancy Contributions	No	Paid into redundancy funds—commonly industry-specific.

Employee Contributions

Where an employee’s super contribution affects PAYG, the gross is reduced before tax is calculated.

Code	Description	PAYG	Comment
CC	Co Contribution	No	Matched by government (up to $1.50 per $1), subject to income eligibility.
SS	Salary Sacrifice	Yes	Deducted pre-tax; reduces PAYG tax.
SP	Spouse Contributions	No	Made by an employee on behalf of a spouse.
MV	Member Voluntary	No	Post-tax contributions; deduction taken after gross pay and tax are calculated.

Ordinary Time Earnings

Type of Payment	Include in Super	Comment
Regular Pay	Yes	This is often called "Hourly Pay" or "Salary" when using Reckon Accounts.
Shift Loadings	Yes	Includes penalties or loadings for shift work.
Overtime	No	Applies to hours worked beyond ordinary time (e.g., time-and-a-half, double time).
Holiday Loading	No	Typically set at 17.5%.
Sick & Holiday Pay	Yes	Excludes payments made on termination.
Long Service Leave	Yes	Excludes payments made on termination.
Termination Pay	No	Includes unused leave payouts and other entitlements; not considered OTE. This is typically holiday and or long service leave that is available to an employee as of the Termination Date.
Redundancy Payments	No	Compensation for loss of employment; not classified as OTE.

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