Get App
If you’re a casual employee, you could be entitled to superannuation. In this article, we break down who is eligible and what to do if your employer isn’t paying you super.
Regardless of your age or experience, if you’re a member of the workforce in Australia it’s a good idea to understand your entitlements when it comes to superannuation.
This article will discuss some of the main things a casual worker should be aware of when it comes to superannuation, and what you can do if you believe your employer is not paying you what you’re entitled to.
What is superannuation?
Superannuation is a portion of your earnings and savings that is put in a fund and typically held there until you can access it at retirement. During this time, it is generally invested with the goal of accumulating an income you can use in your retirement.
The minimum amount of superannuation your employer pays into your fund is based on the Superannuation Guarantee (SG). At the time of writing, the SG scheme requires that employers make a compulsory superannuation contribution of 10% of your base salary, which includes casual loading, and most types of allowances and bonuses. Overtime bonuses are not included. This is set to increase annually on 1 July to reach 12% by 2025, with phased increases as follows:
- 1 July 2021 – 30 June 2022, SG is 10%
- 1 July 2022 – 30 June 2023, SG will be 10.5%
- 1 July 2023 – 30 June 2024, SG will be 11%
- 1 July 2024 – 30 June 2025, SG will be 11.5%
- 1 July 2025 – 30 June 2026 and onwards, SG will be 12%.
Source: Australian Taxation Office via Canstar.
Do casual employees get superannuation?
At the time of writing, if you are over 18 and earn more than $450 a month (before tax), you may be entitled to superannuation, irrespective of whether you are a permanent or casual employee. However, this $450 monthly threshold is about to be scrapped. From 1 July 2022, the Australian Taxation Office (ATO) states that “employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid”. If you are aged under 18, the rules are slightly different – for example, you also need to work more than 30 hours in a week.
Explore: Superannuation for under 18s
However, employees must still satisfy other super guarantee eligibility requirements. Some organisations or employers may be exempt, too. The ATO has a tool you may find helpful to estimate how much super guarantee your employer should have paid for you.
Who is eligible for superannuation?
According to the ATO, employers have to pay super regardless of whether an employee:
- is full-time, part-time or casual
- receives a super pension or annuity while still working – including those who qualify for the transition-to-retirement measure
- is a temporary resident, such as a backpacker or a working holiday maker – when they leave Australia, they can claim their super through the Departing Australia Superannuation Payment (DASP) program
- is a company director
- is a family member working in the employer’s business – provided they are eligible for SG.
What matters with signing up for a super fund?
There are also several things you should be aware of when it comes to signing up for, or receiving, super.
- You usually have the ability to choose your own super fund. If you do not choose your own, your employer will typically nominate its default fund for you.
- You should be presented with a standard choice form when choosing a super fund or starting a new job.
- Your employer should not attempt to sway or influence your choice of super fund.
- While some employers may choose to make your super contributions every fortnight or every pay cycle, by law you must be paid super at least quarterly, by the 28th day after the end of each quarter.
→ Related article: What is lost super and how can you find it?
Super funds differ when it comes to fees, investment strategies (such as high-risk or balanced), life insurance inclusions and performance over time. You may like to compare funds and consider your situation in determining which fund and investment option may be right for you.
How can you consolidate your super?
If you have worked in more than one job during your career and didn’t tell a new employer about your existing super fund, then under the current rules there is a chance you have more than one super account set up for you. Some people in this situation decide to consolidate their super funds to save on fees and keep their balance in one place, but you may want to do some further research into super consolidation before you begin.
It’s important to note that under new rules, if you are moving to a new job and have an existing super account, your employer will be required to make super contributions into your existing fund by default, unless you opt to switch to another fund. This is known as super stapling.
What if my employer isn’t paying me super?
It’s important to know your rights as an employee when it comes to super, and you should consider monitoring your super account and payslips to ensure you’re being paid correctly and on time.
If your employer isn’t paying you the minimum amount of SG you’re entitled to by the correct date, then you might consider raising the issue with them first. You can ask them how often they’re paying your super and which fund they’re paying the money into, to clarify.
If your employer has not paid your super on time, they are obligated to pay a Superannuation Guarantee Charge to the ATO, that includes interest and an administration fee, as well as the SG payments you were entitled to. The ATO will then transfer this money (minus the administration fee) to your chosen super fund.
→ Related article: Here’s how much super Aussies need in their accounts right now to retire comfortably
Contacting the ATO about a super complaint
The ATO has an online tool that you can use to let them know if you believe your employer hasn’t met their superannuation obligations. This includes if you believe they’ve not paid your super, paid your super late or paid your super to the incorrect fund. If you suspect your employer is not paying you super correctly, you can also lodge a complaint with the ATO using one of the following additional options.
How to lodge a complaint with the Australian Taxation Office
- Use the ATO’s complaints form
- Phone 1800 199 010 8am–6pm, Monday to Friday (local time), except public holidays
- Fax 1800 060 063
- Write to Australian Taxation Office, PO Box 1271, Albury, NSW, 2640.
If you have a hearing, speech or communication impairment, you can phone the National Relay Service on 13 36 77.
Cover image source: Monkey Business Images/shutterstock.com.
This content was reviewed by Sub Editor Jacqueline Belesky as part of our fact-checking process.
Share this article