Superannuation
Students are entitled to superannuation under certain conditions. Make sure your employees receive all their entitlements.
Superannuation makes up an important part of remuneration. Students may not be certain how this works in relation to their pay.
The law requires employers to pay an extra 9% in superannuation to employees who:
- earn at least $450 per month; and
- if aged below 18, work at least 30 hours a week.
Some Awards and Agreements have Superannuation clauses written in to them which mean that even if an employee doesn't meet these criteria, superannuation contributions will be made to a superannuation account on their behalf by the employer.
If a student meets these criteria, or are entitled through their Award or Agreement to superannuation, you need to ensure that you are making appropriate contributions to a superannuation fund of their choice. You need to give your employee a 'Standard Choice form'.
However, if the student doesn't make a choice, you will choose on their behalf. Students are advised that this could make it hard to keep track of when leaving the job and starting another.
The Australian Securities and Investments Commission (ASIC) offers a lot of advice about choosing a Super fund, changing funds, and help with comparing funds.
Click here for the ASIC website section on Superannuation