25 Jun 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
PDF Document click here