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Superannuation for Minors: How Does It Work?

For most employees, Australian businesses are required to pay an employee super on top of that person’s wages, if the employee earns more than $450 (before taxes) in a calendar month. If your company has employees who are under 18 years of age, or if  they are a private or domestic worker, then the employee must also work more than 30 hours per week to qualify for their super contributions.

Employees Are Entitled to Super If They Meet the Requirements

When the above requirements are met, the employer has an obligation to make Superannuation Guarantee (SG) payments for the employee. Superannuation is payable for all employees, including minors, even in the following situations:

●      whether the employee is part-time, full-time or casually employed

●      receives a super pension or annuity while still working

●      the employee is a temporary resident

●      they are a company director

●      they are a family member working for the business.

Are There Any Employees Who Are Not Entitled to Receive Super?

The following employees, who do not meet the above criteria, are not entitled to receive superannuation:

●      non-resident employees that are paid for work they do outside Australia

●      some foreign executives who do not hold certain visas or entry permits

●      employees who get paid under the Community Development Employment Program

●      members of the army, naval or air force reserve – for work carried out in that specific role

●      employees who are temporarily working in Australia, if they get covered by a super bilateral agreement.

If you are a non-resident employer, you will not have to pay super for resident employees who are doing work outside Australia.

There’s a handy tool on the Australian Taxation Office website to help you work out which employees are eligible to receive SG contributions. When it comes to younger employees, the short answer is: if they’re under 18, earn at least $450 in a calendar month (before tax) and work more than 30 hours per week—they’re entitled to superannuation.

Contact us at Nationwide Super if you’d like to know more.

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