Changes to Superannuation Guarantee contributions

Xero handles superannuation guarantee (SG) contribution rate increases and updates them for you. You can also manually update this in an employee’s pay template if necessary.

How it works

  • Xero automatically apply the correct rates for superannuation. Like tax tables, we store Superannuation Guarantee rates and retrieve the right percentage based on the payment date of your pay runs.
  • If a contribution increases, you’ll need to pay your employees the new minimum amount. The new rates apply to the payment date of a pay run, not the pay period. Key superannuation rates and thresholds (ATO website)
  • The Statutory Rate option automatically applies to your existing employees' pay templates and superannuation lines if the:
  • Contribution type is SG Contribution.
  • Calculation type is Percentage of Earnings.
  • Percentage applied on the employee's pay template is 9.50%.
  • Any superannuation lines you add will default to the statutory rate option for new employee pay templates.
  • Xero does not automatically cap super contributions. If you have an employee whose earnings are in excess of the maximum contribution base, you will need to update their pay template manually.
  • If your employees don’t have the correct Superannuation Guarantee rate for the year, it could be because the payment date of the pay run is not correct, or contributions are set up in a way that means automatic updates have not been applied.

Set up pay templates to include SG contributions

  1. On the Payroll menu, click Employees.
  2. Select the employee you want to check.
  3. Select the Pay Template tab.
  4. Open the superannuation line and check their SG rate is set to update automatically.
    • In the Contribution Type field, select Superannuation Guarantee Contribution (SGC).
    • In the Calculation Type field, select Statutory Rate.
    • Click OK. You will now see 'Statutory Rate' against the payment line.
  5. Click Save.
  6. Repeat for each employee.

Adjust pay templates to include a Maximum Contribution Base

  1. On the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Select the Pay Template tab and open the superannuation line.
  4. In the Contribution Type field, select Superannuation Guarantee Contribution (SGC).
  5. In the Calculation Type field, select Percentage of Earnings.
  6. Click OK.
  7. Enter '0.00’ in the percentage field.
  8. Click Save.
  9. Repeat for each employee.