Casual employment has its own set of rules when it comes to pay, entitlements, and benefits. One of the areas that often causes confusion however is superannuation. According to a news article from The Sydney Morning Herald, $5.1billion in super was underpaid for around 2.8 million Australians, which is roughly $1800 for each on average.
Therefore, whether you’re a casual employee or an employer managing casual staff, based on the worrying statistics mentioned, it is crucial to understand your rights and responsibilities regarding superannuation contributions.
Superannuation for Casual Employees
Under Australian labour law, most casual employees are entitled to superannuation. As per the Superannuation Guarantee (SG), employers must contribute a percentage of the employee’s earnings into a super fund if the employee meets certain conditions.
Here are the basic requirements for casual employee super:
- Earning threshold: Casual employees must earn at least $450 (before tax) in a calendar month to be eligible for super contributions.
- Age criteria: Employees over 18 or those under 18 years old must also work more than 30 hours in a week to qualify for superannuation.
Fair Work and Modern Awards
Casual employees, like permanent staff, are entitled to superannuation under the Superannuation Guarantee, provided they meet the eligibility criteria. Employers must contribute 11.5% of the ordinary earnings (as of September 2024) into the employee’s nominated super fund. It’s important to note that certain modern awards and enterprise agreements may have additional superannuation conditions.
National Employment Standards and Superannuation
Superannuation is an entitlement under the NES, and most employees can take legal action to recover unpaid super. If an employer complies with the Superannuation Guarantee, they meet NES obligations. However, certain employees in states like NSW, QLD, VIC, and TAS employed by unincorporated entities or local governments do not have super entitlements under the NES but may still be covered by super laws or agreements.
What Employers Should Know
Employers are legally required to make superannuation payments at least quarterly. This includes all eligible casual employees, not just full-time or part-time staff. Some key points for employers to consider include:
- Ensuring that all super payments are made on time to avoid penalties.
- Keeping accurate records of earnings and hours worked by casual employees.
- Being aware of any additional superannuation obligations outlined in the modern award relevant to your industry.
Common Mistakes for Casual Employees
Casual workers often miss out on super because they are unaware of their entitlements. To avoid this, casual employees should:
- Check their payslips to ensure super contributions are being made.
- Contact their employer or the Australian Tax Office (ATO) if they suspect their super isn’t being paid correctly.
- Ensure they meet the eligibility criteria, including the $450 earning threshold and working hours for those under 18.
To Wrap Up
Understanding your rights as a casual employee when it comes to superannuation is essential for ensuring financial security in retirement. Whether you’re a casual worker or an employer, staying compliant with Australian labour laws and modern awards will help avoid any superannuation disputes. By knowing the ins and outs of casual superannuation, both employees and employers can ensure they meet their obligations and entitlements.
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Read More:
Understanding Casual Employment Rights in Australia
All you need to know: Casual Employment Information Statement (CEIS)
Casual workers: Are You Paying Tax Correctly?
Payroll Compliance for Casual Employees in Australia 2024
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Efficient part-time employee scheduling and attendance with Australia’s best rostering software
