Superannuation

A payment made to and invested in a superannuation fund by an employer or employee towards a pension for the employee's retirement. Superannuation is sometimes known as "super".

Employers are required to make minimum superannuation contributions for most employees, in addition to their salary or wages, to avoid liability for the superannuation guarantee charge under the Superannuation Guarantee Charge Act 1992 (Cth) and the Superannuation Guarantee (Administration) Act 1992 (Cth).

These compulsory minimum contributions are sometimes known as the superannuation guarantee. The superannuation guarantee is currently 11% of ordinary time earnings.

Employees may also direct their employers to make voluntary additional superannuation contributions on their behalf out of their pre-tax earnings.

Certain record-keeping and pay slip obligations apply to superannuation contributions (see Practice note, Record-keeping and pay slip obligations under the Fair Work Act).