SUPERANNUATION – Increasing The Superannuation Guarantee Rate to 12 per cent

SUPERANNUATION – Increasing The Superannuation Guarantee Rate to 12 per cent

Your super obligations are changing from 1 July 2013. The compulsory super guarantee rate will be gradually increased from 9% to 12% over 7 years.

SUPERANNUATION – INCREASING
THE SUPERANNUATION GUARANTEE RATE TO 12 PER CENT

Your super obligations are changing from 1 July 2013.

The compulsory super guarantee rate will be gradually increased from 9% to 12% over 7 years.

Effective changes:

  • 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 7 years
  • Make super guarantee contributions for employees who are 70 years and over.
  • Date Changes
  • 1 July 2013 Increase your employee’ super guarantee rate from 9% to 9.25%
  • Make super guarantee contributions for employees who are 70 years old or older.
  • 1 January 2014 Employers must make super guarantee contributions for employees who have not completed a choice 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
  • Contributions.
  • 1 Ju 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 Ju 1 July 2016 Increase your employees’ super guarantee rate from 10% to 10.5%
  • 1 Ju 1 July 2017 Increase your employees’ super guarantee rate from 10.5% to 11%
  • 1 Ju 1 July 2018 Increase your employees’ super guarantee rate from 11% to 11.5%
  • 1 Ju 1 July 2019 Increase your employees’ super guarantee rate from 11.5% to 12%

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 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

For more information, go to ato.gov.au/mysuper

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