After lengthy discussion, the Superannuation Guarantee (Administration) Amendment Act 2012 received royal assent on 29 March 2012. These changes have finally been made after they were recommended in the Henry Review. The new rules will impact greatly on all businesses – especially SME’s.
The major change that was made in the legislation was the increase of the superannuation guarantee rate. This rate will gradually increase from 9% to 12% between 1 July 2013 and 1 July 2019. This will make a difference not only to employees, but to employers also.
The legislation also stated that the super guarantee age limit of 70 will be removed from 1 July 2013. All business owners will be required to contribute to complying super funds of eligible mature age employees aged 70 and older. This is a great step for our society where many seniors continue to work well past the age of 70 and deserve the benefits of superannuation as well.
These changes are a part of the Australian Government’s ten year agenda which will apply a Resource Super Profits tax to the profits earned from resources that are owned by all Australians, and use this new revenue to: generate more superannuation savings for working families; lower tax for all companies, especially small businesses; and invest in Australia’s future infrastructure needs, particularly for mining states.
Obviously these are sizeable changes and as a business owner, you must understand and follow these new rules. If you have any questions regarding the recent changes to the super guarantee (or any questions regarding to superannuation in general) please do not hesitate to contact the experienced team of accountants and lawyers here at The Quinn Group. For more information submit an online enquiry or call us on 1300 QUINNS (784 667) to make a booking.