Your Vital Guide to Employer Contributions


Superannuation is a cornerstone of financial security in Australia, ensuring individuals can enjoy a comfortable retirement. As we delve into the year 2023, understanding the Superannuation Guarantee (SG) and how employers contribute to their employees’ superannuation funds remains crucial. In this comprehensive guide, we will explore the Superannuation Guarantee, shed light on employer contributions, emphasize the significance of the Superannuation Standard Choice Form, and outline the roles of both employers and employees in building retirement savings. Join us as we demystify employer contributions to superannuation and empower you with the knowledge you need for financial security. 

The Superannuation Guarantee (Superannuation Guarantee) 

The Superannuation Guarantee (SG) is a fundamental element of Australia’s superannuation system, mandating that employers contribute a minimum percentage of their employees’ ordinary time earnings into their superannuation fund. This contribution is designed to help individuals accumulate savings for retirement. 

How the Superannuation Guarantee Works 

The Superannuation Guarantee operates on specific principles: 

1. Contribution Rate (Superannuation Percentage): As of the current legislation, the Superannuation Guarantee rate is set at 11% of an employee’s ordinary time earnings. This rate is calculated based on an employee’s gross income, excluding overtime payments. 

2. Eligible Employees (Superannuation Guarantee): Most employees in Australia are eligible to receive Superannuation Guarantee contributions from their employers. This includes full-time, part-time, and casual employees. 

3. Minimum Earnings Threshold (Superannuation Guarantee): Employees who earn less than a specified threshold in a calendar month are not eligible to receive Superannuation Guarantee contributions for that month. 

4. Superannuation Fund Choice (Superannuation Standard Choice Form): Employees have the right to choose their superannuation fund into which their employer contributions are deposited. This choice is made through the Superannuation Standard Choice Form. 

Superannuation Standard Choice Form (Superannuation Standard Choice Form) 

The Superannuation Standard Choice Form is a critical element of the Superannuation Guarantee system, enabling employees to nominate the superannuation fund where their employer contributions will be deposited. Here’s what you need to know: 

1. Employee’s Right (Superannuation Standard Choice Form): Employees have the right to choose their superannuation fund. Employers are legally required to provide employees with a Superannuation Standard Choice Form when they commence employment. 

2. Default Fund (Superannuation Standard Choice Form): If an employee does not make a choice or does not have a preferred superannuation fund, the employer may deposit contributions into a default fund. This default fund is typically the employer’s default superannuation fund or an industry fund. 

3. Changing Superannuation Funds (Superannuation Standard Choice Form): Employees can change their nominated superannuation fund at any time by submitting a new Superannuation Standard Choice Form to their employer. It’s a flexible process that allows individuals to align their superannuation with their financial goals. 

Employer Contributions (Superannuation Fund) 

Employers play a crucial role in facilitating superannuation savings for their employees. Here’s how employer contributions work: 

1. Calculation (Superannuation Salary Sacrifice): Employers calculate Superannuation Guarantee contributions based on each eligible employee’s ordinary time earnings and the current SG rate (currently 11%). 

2. Payment (Superannuation Salary Sacrifice): Employers are responsible for depositing the calculated contributions into the employees’ nominated superannuation funds. These payments must be made on a quarterly basis.1 

3. Due Dates (Superannuation Due Dates): It’s essential for employers to adhere to the Superannuation Guarantee due dates to ensure timely contributions. Contributions must be made by the 28th day following the end of each quarter. 

Employee Contributions 

While the Superannuation Guarantee mandates employer contributions, employees also have the option to make voluntary contributions to their superannuation fund. These contributions can be made through salary sacrifice arrangements or personal contributions. Making extra contributions can be a strategic way to bolster retirement savings and take advantage of the favorable tax treatment associated with superannuation. 

The Benefits of the Superannuation Guarantee 

The Superannuation Guarantee offers several benefits to employees: 

1. Retirement Savings: It provides a structured and consistent way to save for retirement, ensuring that individuals build a financial cushion for their post-work years. 

2. Tax Advantages: Contributions made to superannuation often receive favorable tax treatment, including concessional tax rates on contributions and investment earnings. 

3. Choice and Control: Employees have the freedom to choose their superannuation fund, allowing them to align their superannuation savings with their financial goals and values. 

4. Financial Security: The Superannuation Guarantee contributes to financial security during retirement, reducing the reliance on government pension schemes. 


Understanding the Superannuation Guarantee, the role of the Superannuation Standard Choice Form, employer contributions, and the importance of adhering to due dates is essential for financial planning. By comprehending these fundamentals, individuals can make informed decisions about their retirement savings and exercise greater control over their financial future. Whether you are an employer or an employee, leveraging the Superannuation Guarantee system effectively can lead to a more secure and comfortable retirement. Contact us today.


  • Australian Taxation Office (ATO) 
  • Superannuation Industry (Supervision) Act 1993 

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This website contains factual information only and does not consider your personal circumstances, needs, objectives or financial situation. This factual information is not intended to imply any recommendation or opinion about a financial product. This information does not constitute financial advice or taxation advice, and the general nature of the content might not be applicable to you or your situation. Before acting on any information, you should seek professional advice and verify our interpretation/s before relying on the content or calculators within this website, while also considering its appropriateness in relation to your personal situation.


ASIC is simplifying the superannuation and retirement planner calculators while undertaking a scheduled review of assumptions.

As of 17 April 2020, these calculators will use a single set of assumptions.

The default assumptions in this calculator are based on Treasury’s long-term retirement income models. For more information on Treasury’s long-term retirement income modelling assumptions see the 2019 Treasury Research Institute paper ‘Accumulation of superannuation across a lifetime.


The calculator works for accumulation funds only. It will not work for defined benefit funds.

We assume your account balance will receive all income and outgoings mid-year, apart from Government co-contributions which we assume are received at the end of the year.

Results are in today’s dollars

Results are shown in today’s dollars, which means they are adjusted for inflation.

Inflation assumptions

We make the following default assumptions on inflation (which you can change under the ‘Advanced  – insurance and inflation’ section that appears below calculator results):

  • 2.5% each year due to the rising cost of living (CPI inflation)
  • A further 1.5% each year due to the cost of rising community living standards


We assume that your employer contributes an amount equal to 10.5% of your ordinary time earnings (you can change this in ‘You and your super fund’).

In future years we assume that:

  • Your employer and voluntary contributions will increase with inflation
  • You will satisfy the Work test at older ages and so are able to contribute
  • From 1 July 2021, the SG rate used for the default employer contribution rate is 10%. The SG rate is assumed to increase by 0.5% per annum until the SG rate reaches and stays at 12% from 1 July 2025 onwards.

Investment return

We make the following default assumptions for investment return and earnings tax:

  • Investment return before investment fees and earnings tax of 7.5% each year
  • An effective tax rate on investment earnings of 7.0%.

Actual returns will vary significantly from year to year and could be negative in some years, particularly for investment mixes where more is invested in shares and property. This calculator does not allow for such variations. You can vary assumptions in ‘You and your super fund’ and ‘Compare alternative fund’.

There is a lot to consider when comparing investment options between funds. Risk and return objectives and asset allocation within investment options may differ between funds and should be taken into account when comparing funds.

Further information

  • Super contributions must remain in super until you have met a condition of release. Weigh up the benefits of extra super against your other priorities, for example paying off your credit cards.
  • You will need to refer to your latest super account statement.


  • This is a model, not a prediction.
  • The results from this calculator are based on the limited information that you have provided and assumptions made about the future. The amounts projected are estimates only provided by this model and are not guaranteed.
  • This calculator cannot predict your final superannuation benefit with certainty because this will depend on your personal circumstances including unexpected events in your life and external factors such as investment earnings, tax and inflation. This calculator assumes that you can make steady, predictable contributions and that all assumptions including these external factors will operate at set, steady rates for as long as you remain in the fund, even if events turn out differently from what’s assumed. These assumptions are essential so the calculator can show the effect of things you may be able to control, such as choosing a low-fee fund.
  • You should consider updating the projections provided by this model regularly as your circumstances may have changed. You can also change and update some of the assumptions to reflect your personal circumstances.
  • Do not rely solely on this calculator to make decisions about your retirement, there may be other factors to take into account. Consider your own investment objectives, financial situation and needs. You may wish to get advice from one of our licensed financial advisers.

How do I find my TFN?​

If you do not know your tax file number you can locate it via your income tax assessment, employee payment summaries, MyGov online account or you can call the ATO directly on 13 28 61 and request it over the phone.

Why we require your Tax File Number (TFN)?

Lost Super Finder will use the ATO portal to track down your Lost and Missing super accounts. Without a valid TFN being supplied, we are unable to complete the superannuation search for you.