Table of Contents

About Superannuation Information from Reckon Accounts

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:

  1. Short-fall
  2. Nominal Interest
  3. 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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