Recently the Federal Government responded to a review of Australia’s superannuation system with a series of reforms. Employers in particular will need to take action on these changes.
Changes to Superannuation Guarantee
The percentage of the superannuation guarantee will gradually increase from the current 9% from 1st July 2013 up to 12% by 1st July 2015.
- – Employers will need to increase the amount of super contributions for employees from 1st July 2013 by 0.25% each year until 1st July 2019.
- – Failure to calculate the correct amount of superannuation guarantee will result in the employer being liable for the superannuation guarantee charge.
The age restriction on the superannuation guarantee will be lifted after 1st July 2013.
- – Employers will have to pay superannuation guarantee contributions for eligible employees over 70 years of age.
- – If an employer fails to make superannuation contributions for eligible employees they are liable for the superannuation guarantee charge.
Super Information & Payments to be Electronic
Employers will be required to pass information and payments to superannuation funds via a standard electronic format. This includes transactions undertaken on behalf of an employee such as roll-over of super benefits, contributions, registration of members and issuing Member Contribution Statements.
This change will be in effect by 1st July 2014 or 1st July 2015 (for employers with less than 20 employees). Penalties will apply for non-compliance with the new standards.
New Information Requirements on Payslips
Before: Currently employers are required to report accrued contributions on payslips under Fair Work regulations.
After: Employers will be required to report the amount of actual super contributions (in addition to accrued contributions) and the date on which the employer makes the contributions.
This change will be in effect after 1st July 2013
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.