Superannuation – Employer Obligations

 

13 May 2013

Your super obligations are changing - get ready now

From 1 July 2013

You need to increase the compulsory super payments you make on behalf of all your eligible employees (called 'super guarantee' or 'SG') to 9.25%. This is the first of several increases over the next seven years.

Make super guarantee contributions for employees who are 70 years old or over.

Start preparing now

Ensure your payroll and accounting systems are able to cater for the gradual increase in the super guarantee rate and removal of the upper age limit.

If you have 19 or fewer employees, consider using the free Small Business Superannuation Clearing House, which lets you pay your super contributions in one transaction to a single location.

Want more information?

ato.gov.au/employersuper

humanservices.gov.au/smallbusinesssuper

Date

Change

1 July 2013

Increase your employees' super guarantee rate from 9% to 9.25%.

Make super guarantee contributions for employees who are 70 years old or over.

1 January 2014

Employers must make super guarantee contributions for employees who have not completed a choice of fund form to a fund that is authorised to offer a MySuper product.

1 July 2014

Increase your employees' super guarantee rate from 9.25% to 9.5%.

If you have 20 or more employees, use the new data and e-commerce standard when making super contributions.

1 July 2015

Increase your employees' super guarantee rate from 9.5% to 10%.

If you have 19 or fewer employees, use the data and e-commerce standard when making super contributions. You can also use the Department of Human Services' free Small Business Superannuation Clearing House.

1 July 2016

Increase your employees' super guarantee rate from 10% to 10.5%.

1 July 2017

Increase your employees' super guarantee rate from 10.5% to 11%.

1 July 2018

Increase your employees' super guarantee rate from 11% to 11.5%.

1 July 2019

Increase your employees' super guarantee rate from 11.5% to 12%.

Changes to employer super obligations - at a glance

Super guarantee rate rise

The compulsory super guarantee rate will be gradually increased from 9% to 12%, over seven years. The first increase, from 9% to 9.25%, will take effect on 1 July 2013.

Removal of the super guarantee upper age limit

From 1 July 2013, the existing age limit for employee super guarantee eligibility will be removed. This means you will need to start making super guarantee payments for eligible employees who are 70 years old or over.

MySuper

Employers must have a nominated fund, or 'default fund', where they make super guarantee payments for employees who have not selected a preferred fund (by completing a choice of fund form).

From 1 January 2014, employers must make these contributions to a fund that offers a MySuper product: a new, simple and cost-effective super product that will replace existing default products. Super funds will be allowed to provide MySuper products from 1 July 2013, and they will provide you with information to help with the changeover from existing arrangements.

Data and e-commerce standard

The new data and e-commerce standard will reduce the time it takes to process super contributions and lower transaction costs by providing a consistent, reliable electronic method of making contributions. This means you may need to change the way your business processes super payments.

The new standard will be applicable from 1 July 2014 for businesses with 20 or more employees, and 1 July 2015 for businesses with 19 or fewer employees.

 

Disclaimer
All representations and information contained in the Sam David web site are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific taxation advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice.