Employers note the changes to Super from July 1

 

Employers should be aware of their changing superannuation (super) obligations over the coming years under a range of super reforms, according to the Australian Taxation Office (ATO).

Changes to the super guarantee started on 1 July this year and employers must comply with the new laws.

Alison Lendon, ATO Deputy Commissioner for Superannuation, said the change to the super guarantee rate from nine per cent to 9.25% will apply to all employers from 1 July 2013.

Employers must also start making super guarantee contributions to eligible employees who are aged 70 or over.

Calculating the super guarantee increase

Employers calculating their super guarantee for pay periods that cross over 1 July should note that the super guarantee rise will be compulsory for all salary and wage payments after 30 June.

“Contributions are calculated based on the date you pay salary and wages to your employees,” Ms Lendon said.

“This means that salary and wage payments made after 30 June 2013 will need to be calculated using 9.25 per cent, not nine per cent.”

For help calculating super guarantee contributions, visit ato.gov.au/supertools

Free help for small business

Small businesses are encouraged to use the free Small Business Superannuation Clearing House to help meet their super guarantee obligations. The Small Business Superannuation Clearing House lets employers pay their super contributions in one transaction to a single location. It is designed to make the super payment process easier by reducing red tape and compliance costs.

Small businesses simply register their employees’ super fund details and the clearing house will distribute the contributions to their various super funds.

“If you have 19 employees or fewer, you can use this free service to pay your super contributions in one transaction to a single location. There are also a range of commercial clearing houses that can help businesses of all sizes process their super contributions,” Ms Lendon said.

 

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