From 1 July 2013, medium and large businesses will need to comply with the following super obligation changes:
- Compulsory super payments that employers make on behalf of their eligible employees will increase from 9% to 9.25% (this rate will be gradually increased to 12% by July 2019).
- The existing age limit for employee super guarantee eligibility will be removed. This means employers must start making super guarantee (SG) payments for eligible employees aged 70 years and over.
- Employers must make super guarantee payments for employees who have not selected a preferred fund, to a fund that offers a MySuper product, by 1 January 2014. Funds are allowed to start offering MySuper products from 1 July 2013.
Also to note is that employers with 20 or more employees must use the data and e-commerce standard by 1 July, 2014 as part of the Government's SuperStream measures. By transferring superannuation payments electronically, using the standard, the method should become more reliable and consistent.
Please contact our office if you would like to discuss or require assistance.
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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.