How will the superannuation changes impact your business?
From 1 July 2013, the changes to the superannuation guarantee will come in to effect. As a business owner you will need to change your current ways of dealing with super. Here is what you need to know to ensure you’re paying your employees’ superannuation correctly, and in accordance with the new rules and regulations.
The superannuation guarantee rate is increasing
From 1 July 2013, the super guarantee rate is going up. The rate will increase gradually over 7 years from 9% to 12% by 2019. If you were making super payments at the minimum 9% rate, you need to adjust payments to the new rate from 1 July 2013 (and each year after that in accordance with the below table).
|1 July 2013||9.25%|
|1 July 2014||9.50%|
|1 July 2015||10%|
|1 July 2016||10.50%|
|1 July 2017||11%|
|1 July 2018||11.50%|
|1 July 2019||12%|
The age limit will be removed
From 1 July 2013, the upper age limit for paying super for an employee will be removed, so now mature age workers can keep building their retirement savings. This means there will no longer be a maximum age for super guarantee eligibility. If you have eligible employees aged 70 years or older you will now need to make super contributions to their super funds.
From 1 July 2013, super funds must start providing a new type of super account called MySuper. This will replace existing default accounts offered by super funds. A default fund account is one chosen by you for an employee who does not choose their own super fund. From 1 January 2014, if an employee has not completed their choice of fund form, you must pay super contributions into a fund that offers a MySuper product.
Super payments will be made easier
A data and e-commerce standard is being introduced to make processing super payments easier. The new standard aims to: reduce the time it takes to process super payments; lower transactions costs; and provide you with a consistent, reliable, electronic method of making payments. This new standard means you will be able to send super contributions to funds in one standard electronic format.
If you have 20 or more employees you will need to start using the new data and e-commerce standard from 1 July 2014. If you have 19 or less employees you will need to start using the standard from 1 July 2015.
If you have any questions about the changes to the superannuation guarantee that are coming in to place, or require further information as to how they will impact your business, please contact the experienced team of accountants and financial planners here at The Quinn Group. Visit www.quinns.com.au and submit an online enquiry or call +61 2 9223 9166 to book an appointment.