From 1 July 2013, you will start to notice changes to your superannuation as the new super guarantee reforms come in to effect – this will impact you personally in a number of ways. Here is what you need to know to ensure your superannuation is in accordance with the new rules and regulations.
The superannuation guarantee rate will increase
The super guarantee rate will start to increase, meaning your employer must pay more into your super. Generally, you’re entitled to super guarantee contributions from your employer if you’re aged 18 or older and paid $450 or more (before tax) in a month. It doesn’t matter whether you’re working full time, part time or casual, and it doesn’t matter if you’re a temporary resident of Australia. The super guarantee rate will gradually increase from 9% to 12% of your ordinary earnings over 7 years.
|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%|
You might be eligible for an extra $500 a year
Starting from now, the Australian Government will put up to $500 extra into your super each year if you earn up to $37,000 a year. It’s called the low income super contribution. You don’t need to do anything to apply, the ATO will work out if you’re eligible for payment or not.
The superannuation guarantee age limit will be removed
From 1 July 2013, the upper age limit for paying super for an employee will be removed, so if you’re a mature age worker you can keep building your retirement savings. This means you may be eligible to get super from your employer if you’re 70 or over and still working.
Super funds will now offer a new type of account called MySuper. This will replace existing default accounts offered by super funds. A default super account is one chosen by your employer if you don’t choose one yourself. MySuper will have lower fees and simple features so you don’t pay for services you don’t need. From 1 January 2014, if you haven’t chosen a super fund, your employer must pay your super to a super fund that offers MySuper. If you already have selected a super fund you can choose to move to MySuper if you want.
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 you, please contact the experienced team of accountants and financial planners here at The Quinn Group. To make an online enquiry or call our office on +61 2 9223 9166 to book an appointment.