Have you prepared for the all the 1 July changes to superannuation?
The much publicised changed to superannuation commence from 1 July 2013. These are:
- The superannuation guarantee percentage will increase to 9.25%.
- The age limit will be removed and employers are required to make contributions to complying superannuation funds for eligible mature age employees aged 70 and older.
- The maximum superannuation base will increase to $48,040 per quarter. The Superannuation Guarantee requires employers to contribute at least 9.25% of an employee's ordinary time earnings (OTE) per quarter. This is limited though to a maximum base salary of $ $48,040 per quarter (i.e. the maximum superannuation base). So, the maximum quarterly contribution to superannuation is $4,443.70 (9.25% of $48,040). Employers are not required to contribute more superannuation for employees who receive greater than the maximum superannuation base. NOTE – STAY TUNED -The Australian Taxation Office has indicated that the maximum superannuation base may change if the Government passes legislation to change the way this amount is indexed.
Please contact us with any questions you have on implementing these changes. Subscribers to Your HRdocs can download a letter for staff notifying them of the changes.