Making super stronger
There’s a lot happening in super at the moment, with the government announcing an overhaul of the super system. Many of these changes affect employers and how you contribute super for your employees, how much you contribute and for whom. The major changes are summarised below. If you have any questions or need help, give us a call on 13 MINE (13 64 63). We’re here to help!
Changes to super contributions
Changing how you contribute to super
In summary, you need to use a payment system that sends your payments and payment information electronically and in a standard format. The changes are about making the payment and processing of your super contributions easier and faster.
When do contribution changes come into effect?
Employers with less than 20 employees will need to adopt the new standard by 1 July 2016, subject to further government consultation. If you’re employing 20 or more employees you have to start following the new payment rules by 31 October 2015.
We’re keen to help you get on top of the new rules and have in place quick and easy solutions to meet the new payment rules. If you’d like to have a chat, give us a call on 13 MINE (13 64 63) and ask to speak to Glenn Padgett, our Employer Relations Service Officer, who’d be happy to help.
What are my options?
You have 20 or more employees and we're your default fund
To make your payments you can use our QuickSuper clearing house. If we're not your main fund, contact your main fund or payroll system provider about their clearing house options. You could contact a clearing house directly, but there might be a cost to use the services.
Your turnover is less than $2 million or you have less than 20 employees
You can pay all your employees’ super contributions to all funds in one transaction using the government’s Small Business Superannuation Clearing House. It’s a free online service and takes the hassle out of making your super contribution, as you no longer need to do things manually and have to send contributions to multiple funds in multiple formats. It’ll also mean you’ll meet the government’s new payment rules. If you’re making your super payments using our web portal or by cheque, fax or email, these contribution methods won’t meet the new payment rules.
Register now and start using this service today.
Changing how much you contribute to super
To help grow Australian workers' retirement savings, from 1 July 2014 the compulsory super contribution you need to make for your employees increased to 9.5% of their pay.
This amount will continue to gradually increase to 12% of your employees' pay as follows:
By using a staged system employers can take increased super guarantee contributions into account when negotiating future wage agreements
Changing for whom you contribute superTo encourage mature workers to remain in the workforce, from 1 July 2013 the age limit of 70 years for receiving super guarantee contributions was removed, meaning you need to pay super guarantee contributions for employees regardless of their age.
Other changes that affect you
MySuper – we’ve got you covered
From 1 January 2014 the default super fund you offer to your employees must offer a MySuper product. Each MySuper product has a standard set of features, such as one investment option or lifecycle strategy, low fees and simple death and disablement insurance, making it easier for people to compare different super products. This change aims to make super less complex and reduce the fees people pay so they have more when they retire.
As we're already a MySuper fund you can continue offering Mine Wealth + Wellbeing Super as your default super fund.
More information on employees’ payslips
Among other details, you need to include the:
- amount of contributions made
- date on which each contribution was made
- Period over which the contributions was made
- name of the fund to which the contribution was made
- the basis on which you became liable to make the contribution, including a record of any election made by the employee, including the date, to have their super paid into a particular fund.
If you contribute to a defined benefit interest in a defined benefit fund, you don't have to fulfil these reporting requirements.
Directors liable under new super guarantee laws
Under new laws directors are now personally liable for their company's unpaid super guarantee obligations. The law aims to protect employees' retirement incomes from employers who deliberately try to avoid paying their super. Employers who are having trouble meeting their super obligations are encouraged to call the Australian Taxation Office on 13 10 20.
How do the new SuperStream rules affect you?
The Australian Taxation Office explains how the new rules for paying your employees' super work and what you need to do.