Do casuals get super?
Under Australia’s Superannuation Guarantee laws, employers are required to pay at least 10% super for casual staff who are over 18 years old and earn more than $450 per month, before tax and are not otherwise exempted from Superannuation Guarantee contributions.
These rules also apply to any casuals who do domestic or private work (i.e. not for a business) for more than 30 hours a week, such as nannies and paid carers.
There are additional criteria for those casual employees who are under age 18.
Super for casuals under 18 years of age
Superannuation must also be paid for any casual employee who is under 18 years of age, works at least 30 hours per week, earns at least $450 per month (before tax) and is not otherwise exempted. This means that employers must pay super for every week that an under-18 casual works 30 hours or more.
How is super calculated for casual employees?
The amount of super an employer must pay a casual employee is worked out in the same way as it is for permanent staff. If a casual worker meets the criteria, then their employer must pay super into the worker’s super fund at least once a quarter.
Currently, Superannuation Guarantee requires employers to pay super equivalent to 10% of the employee’s ‘ordinary time earnings’, which generally include basic salary, shift loadings and most types of allowances and bonuses (except overtime bonus).
Some payments are not ordinarily considered to be part of ordinary time earnings and therefore would not be included in calculations for super, and these include:
- expense allowances, and
However, note that the above is a guide only and not to be relied upon in calculating ordinary time earnings for any particular employee – not all jobs are the same, and not all sources of income are treated the same either.
Mistakes to avoid
Common mistakes made by employers calculating super for casuals include:
- Not separating overtime hours from regular hours. If overtime hours can’t be identified, then they must be treated as regular hours and included in super calculations.
- Not correctly recording hours per week for casuals who are under 18 years of age.
- Including payments that should be left out of super calculations, or leaving out payments that should be included.
Overtime loadings and super
Unlike other loadings, super is generally not paid on overtime loadings. This can cause a lot of confusion. However, a simple chat with one of the Account Managers at TWUSUPER should help you get on the right track.
Can casuals join TWUSUPER?
Yes. Casual employees can definitely join TWUSUPER. Over the last 15 years, we have outperformed the average retail fund* and, as an Industry Super Fund, we are run only to benefit members.
Need more answers?
If you still have any questions about super for casual employees, give us a call between 8am and 8pm (AEST/AEDT) weekdays on 1800 222 071. If you’re an employer who is contributing to TWUSUPER for your other employees, you can contact your TWUSUPER Account Manager directly.
*DISCLAIMER: Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund.
Comparisons modelled by SuperRatings, commissioned by TWUSUPER and shows average differences in net benefit of TWUSUPER's balanced investment option and the main balanced options of retail funds tracked by SuperRatings, with a 5 (119 options), 10 (57 options) and 15 (19 options) year performance history, taking into account historical earnings and fees – excluding contribution, entry, exit and additional adviser fees. Outcomes vary between individual funds. Modelling as at 30 June 2020. See Assumptions for more details about modelling calculations and assumptions. Consider your personal financial situation, needs and objectives, which are not taken into account in this information, and the TWUSUPER Product Disclosure Statement (PDS) available at www.twusuper.com.au before making an investment decision. TWU Nominees Pty Ltd, ABN 67 002 835 412, Australian Financial Services Licence 239163 ('TWUSUPER') as trustee of the TWU Superannuation Fund (ABN 77 343 563 307).