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Skylar.y(Newbie)Newbie
24 Jan 2025

Hi,


I am a newly appointed Payroll Officer currently learning various aspects of my role.

I have a question regarding superannuation requirements.

Our company processes payroll on a fortnightly basis, and I understand that junior employees under the age of 18 are generally exempt from superannuation unless they work more than 30 hours in a week.

In this context, I would like to clarify how superannuation obligations are applied for fortnightly pay cycles:

  • If a junior employee works 30 hours in Week 1 and 10 hours in Week 2 (a total of 40 hours over two weeks), would the superannuation obligation:
    • Apply only to Week 1, where the 30-hour threshold is exceeded?
    • Or would it apply to the total hours worked in the fortnightly period (40 hours)?

For reference, our company operates in ACT, NSW, QLD, and VIC, and adheres to both the Fast Food Award and the Restaurant Award.


I would greatly appreciate your guidance on this matter.

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212 views
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Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
24 Jan 2025

Hiya again @Skylar.y 👋


Neither of your options because the employee under 18 years (as at payday) must work MORE THAN 30 hours to be eligible for SG, as per the ATO SGD 93/1.


Most payroll products cannot apply this eligibility test for under 18s in a pay cycle frequency other than weekly, because payroll is all about the pay period and they cannot calculate separate time/pay for a more frequent period.


The legal eligibility test ONLY exists per WEEK and cannot be factored to apply to other periods.


Which is why employers put them on a weekly pay cycle or just pay SG for them regardless. Unless the payroll product is one of the very few that can do this ...


Deanne

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Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
24 Jan 2025

Hiya again @Skylar.y 👋


Neither of your options because the employee under 18 years (as at payday) must work MORE THAN 30 hours to be eligible for SG, as per the ATO SGD 93/1.


Most payroll products cannot apply this eligibility test for under 18s in a pay cycle frequency other than weekly, because payroll is all about the pay period and they cannot calculate separate time/pay for a more frequent period.


The legal eligibility test ONLY exists per WEEK and cannot be factored to apply to other periods.


Which is why employers put them on a weekly pay cycle or just pay SG for them regardless. Unless the payroll product is one of the very few that can do this ...


Deanne

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Clarification on Superannuation Obligations for Junior Employees | ATO Community