Your super obligations are changing – you need to be prepared now.
Get ready!
• Increase the compulsory super payments you make on behalf of all your eligble employees (‘super guarantee’ or ‘SG’) to 9.25%. Note that this is the first of many increases over the next 7 years.
• Make super guarantee contributions for employees aged 70 years or older.
• Ensure that 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.
Timeline of Changes
| 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 or older |
| 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% to 9.25% • If you have 19 or fewer employees, use the new 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% |
Details of changes to employer super obligations
Super Guarantee Rate Rise
The compulsory super guarantee rate will be gradually increased from 9% to 12% over 7 years.
Removal or super guarantee upper age limit
From 1 July 2013, 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 and above.
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 more than 20 employees and 1 July 2015 for business with 19 or fewer employees.
For more information about all these changes, please visit http://ato.gov.au/employersuper
Note : This article is summarized from SUPER – Your Money Your Future infosheet published by The ATO.