How to SetUp Super Accounts and Avoid Costly Errors
- Simon. P
- Sep 20
- 5 min read
Updated: Nov 26
If you're employing staff in Australia, superannuation isn’t something you “get to later.”
It’s a legal requirement — and one of the quickest ways founders accidentally fall out of compliance.
Most small business owners leave super setup until they run their first payroll, and by then, the risk is already high: missed deadlines, ATO penalties, frustrated employees, and the loss of tax deductions.
Setting up super properly from day one protects your people, your reputation, and your business.
This guide walks you through exactly how to set up super accounts in Australia — step by step, with zero fluff — so you can stay compliant and pay staff confidently.
What Is a Super Account and Why It Matters
A superannuation account is the retirement savings account you, as an employer, must contribute to for eligible employees. Super is not optional — it’s mandated by Australian law.
Super obligations for employers include:
Contributing 11% of an employee’s ordinary time earnings (OTE)
Paying super at least quarterly
Submitting payments using SuperStream (ATO-approved electronic payment system)
Reporting contributions through STP (Single Touch Payroll)
Superannuation rules change over time, so check the current rate each year.
Why Super Account Setup Matters
Superannuation isn’t just about compliance — it affects your tax, your team morale, and your risk profile.
Super setup matters because it helps you:
Avoid ATO penalties
Late payments attract the Super Guarantee Charge (SGC), penalties, interest, and the loss of your tax deduction.
Build trust with employees
Paying super on time signals that you’re professional and reliable.
Stay audit-safe
Proper setup ensures your STP data, super payments, and payroll records align — and that matters during ATO reviews.
Protect your tax deductions
Super is deductible only if paid by the due date.
Mentor Tip:
Superannuation is one of the most common audit triggers for Australian small businesses. Setting it up correctly is non-negotiable.
What You Need Before You Start
Before setting up super, gather:
Your ABN and business bank account
Each employee’s TFN and super fund details
Access to a SuperStream-compliant clearing house
A default super fund (required if an employee doesn’t choose their own)
Payroll or accounting software with STP-enabled super functions
Mentor Tip:
If you have fewer than 19 employees, the ATO’s free Small Business Super Clearing House (SBSCH) is the easiest and cheapest option.
How to Set Up Super Accounts in Australia:
Step-by-Step
Step 1: Choose Your Default Super Fund
Every employer must nominate a default fund for employees who don’t choose their own.
What to look for:
MySuper-authorised
Low fees
Strong long-term performance
Easy employer onboarding
Common options: AustralianSuper, REST, Hostplus, Aware Super
Outcome:
You now have a legally compliant default fund ready to onboard new hires.
Step 2: Register for the ATO Small Business Super Clearing House (SBSCH)
This tool lets you pay super to multiple funds in one transaction — and it’s free.
How to register:
Log in using myGovID (linked to your business via RAM)
Go to the Small Business Super Clearing House
Add your business details, bank details, and default fund
Review the SuperStream instructions
Outcome:
You’re ready to lodge super payments electronically and compliantly.
Step 3: Collect Employee Super Information
For every employee, collect:
Super fund name
Member number
USI (Unique Superannuation Identifier — identifies the fund/product)
TFN
Completed Standard Choice Form (ATO template)
Outcome:
You have all required employee details to load into payroll.
Step 4: Connect Super to Your Payroll System
In your payroll software:
Enter employee super details under their profile
Add your default super fund
Link your payroll file to your clearing house (SBSCH or private)
Enable auto-super if your software supports it
Examples of integrated systems:Xero, MYOB, QuickBooks, Employment Hero
Outcome:
Super is now tied to your payroll cycle and ready to process automatically.
Step 5: Pay and Report Super Quarterly
Super must be paid by the ATO’s quarterly deadlines:
Q1: 28 October
Q2: 28 January
Q3: 28 April
Q4: 28 July
To stay compliant:
Schedule payments before each due date
Use your clearing house to submit contributions
Reconcile payments against payroll records
Outcome:
You’ve paid super correctly, on time, and retained your tax deduction.
Cost of Setting Up Super Accounts
Tool/Service | Cost Range |
ATO SBSCH | Free |
Payroll Software (Xero, MYOB, etc) | $25 – $85/month |
Super Clearing House (Private) | $0 – $10/employee |
Bookkeeper/Payroll Advisor | $80 – $150/hour |
Money-Saving Tip: Use ATO’s free SBSCH if you’re just starting out — then scale to a paid clearing house if needed.
Common Mistakes Business Owners Make
Missing the quarterly payment deadline
Lose your tax deduction and face ATO penalties.
Not offering a choice of super fund
You’re legally required to give employees a choice.
Skipping SuperStream setup
Paper-based payments aren’t compliant — use a clearing house.
Relying on manual spreadsheets
No audit trail = big trouble. Use STP software from day one.
Forgetting casual and part-time staff
If they earn over $450/month (or $350 from July 2025), super applies.
What to Do Right Now
✅ Book a consult: Get help from Noize to set up your payroll, STP, and super legally [noize.com.au]
✅ Get the full StartUp Deck
Everything you need to build a real business — from idea to execution. Over 30 years of hard-won lessons packed into one system so you don’t waste time, money, or momentum. [Includes 6 months of ProDesk access — StartUpDeck.com]
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✅ Download free business resources from ProDesk. [ProDesk.com]
Proven frameworks, copy blocks, and QA checklists to launch right the first time. Or keep patching together YouTube advice while the window of opportunity closes.
The Bottom Line
Superannuation setup is one of the easiest ways to stay compliant — and one of the quickest things to go wrong if ignored.
Set it up early, automate it, and treat super contributions with the same care you give payroll. It protects your team, your tax deductions, and your reputation.
Do it once. Do it properly. Your future self (and your employees) will thank you.
FAQs
Do I have to set up super for casual employees?
Yes, if they earn over the monthly threshold (currently $450, soon $350). Check ATO rules.
What is the deadline for super payments?
Quarterly — 28 Oct, 28 Jan, 28 Apr, 28 Jul. Early payments keep you compliant.
Can I use any clearing house?
Yes — ATO’s SBSCH is free, or you can use one from your super fund or software.
Do I need to pay super if my employee doesn’t give me their fund details?
Yes. You must pay into your default fund.
Can you automate super payments?
Absolutely. Most payroll systems let you set and forget with auto-super features.
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