The Federal Government has made a number of significant changes to Superannuation laws, and any business that employs staff needs to be aware of how this will impact them.
Superannuation Rate Change from 9% to 9.25% on 1st July 2013.
Over the next 7 years, superannuation will progressively increase from the current level of 9% to a rate of 12% by 2019/20. On 1st July 2013, you will need to start paying all employees’ super at the rate of 9.25%.
|Financial Year||Super Rate|
|2012 – 2013||9%|
|2013 – 2014||9.25%|
|2014 – 2015||9.5%|
|2015 – 2016||10%|
|2016 – 2017||10.5%|
|2017 – 2018||11%|
|2018 – 2019||11.5%|
|2019 – 2020||12%|
Superannuation Guarantee for 70+ year old employees
Currently it is not mandatory to pay 9% Superannuation Guarantee to an employee who has reached the age of 70+. From 1st July 2013, this exception has been removed and all employees will be eligible for Superannuation at the prevailing rate, regardless of their age.
Further changes on 1st July 2014
There are further changes that will come into effect from 1st July 2014 including, significantly, the requirement to pay all super electronically using BPay, Direct Credit, or Direct Debit (cheque payments will no longer be allowed).
Download ‘Superannuation Changes Affecting You and Your Business’ Factsheet