Have you prepared for the 1 July changes to superannuation?
The key superannuation changes for 1 July 2014 that employers must be aware of are:
- The superannuation guarantee percentage will increase to 9.5%. Under updated legislation, the Superannuation Guarantee will now stay at 9.5% until 30 June 2018, before it will increase gradually each financial year by 0.5% until it reaches 12% on 1 July 2022.
- The maximum superannuation base will increase to $49,430 per quarter. The Superannuation Guarantee requires employers to contribute at least 9.5% of an employee's ordinary time earnings (OTE) per quarter. This is limited, though, to a maximum base salary of $49,430 per quarter (i.e. the maximum superannuation base). Employers are not required to contribute more superannuation for employees who receive greater than the maximum superannuation base.
- All employer contributions (both data and payments) must be made electronically for all businesses with 20 or more employees from 1 July 2014 with implementation being completed before 1 July 2015. Businesses with less than 20 employees will have until 1 July 2016 to comply with these processing changes.
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 to the SGC.