Under Australian law, all employees of companies and organisations that meet certain eligibility must be paid a superannuation contribution. This generally extends to full-time and part-time employees, but it doesn’t always extend to casual employees.
The Australian Taxation Office (ATO) states that an employer must pay 10% of the value (also known as the super guarantee) of your 'ordinary time earnings' into your super fund if:
- You're over 18 and earn more than $450 before tax in a calendar month, or
- You're under 18 and work more than 30 hours a week (and still earn more than $450 in the calendar month).
If you’re a casual employee who works extra hours occasionally, your employer must adjust their superannuation payment accordingly. How often your superannuation is paid will depend on your company, but it should be done at least quarterly.
If you are casually employed and do not meet the super guarantee threshold, it may be worth considering making voluntary contributions to protect your financial situation in your retirement years.
In Australia, casual workers who make after-tax contributions to their super funds, and are on low or middle-tier incomes, may also qualify for the government’s co-contribution scheme. This is where the government may also make contributions into your super fund up to a maximum amount of $500.
You may also want to speak to a spouse about spousal contributions, which are a type of salary sacrifice your partner can make on your behalf. If you earn under $40,000 per annum, the spouse contributions scheme allows the highest income earner to contribute to your superannuation account (if eligible). The contributing spouse may enjoy a tax offset of up to $540.