Superannuation guarantee

The superannuation guarantee requires employers to provide sufficient superannuation support for their employees. You are obliged to contribute a minimum of 9% of an eligible employee’s OTE to a complying superannuation fund or retirement savings account (RSA). Your contributions need to be made at least every quarter.

The maximum superannuation contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. You do not have to provide the minimum support for the part of earnings above this limit.


ETP cap amount

An employment termination payment (ETP) is a payment made in consequence of the termination of employment. It can include:
  • amounts for unused rostered days off
  • amounts in lieu of notice
  • a gratuity or ‘golden handshake’
  • an employee’s invalidity payment (for permanent disability, other than compensation for personal injury)
  • certain payments after the death of an employee.
Employment termination payments do not include:
  • a payment for unused annual leave or unused long service leave
  • the tax-free part of a genuine redundancy payment or an early retirement scheme payment.
The amount up to the ETP cap amount will be taxed at a concessional rate. The amount in excess of the ETP cap amount will be taxed at the top marginal rate.

ETP cap amount for life benefit termination payments



Tax-free part of genuine redundancy payments and early retirement scheme payments