Most employees would be aware that the compulsory super rate is increasing in each of the next seven years with a 9.25% of salary rate to apply in 2013-14. However, there are a variety of other proposed changes affecting employers that are detailed below.
Also from 1st July, 2013 the upper age limit for SG super contributions is being removed. This means that the 9.25% of salary will need to be paid to eligible employees irrespective of their age. In particular, employers should check if they have employees aged 70 years or over and start making super guarantee payments for them from 1st July, 2013.
During the 2013-14 year (from 1st January 2014 in fact) the default fund must be a MySuper product. The default fund is a nominated super fund where super guarantee payments are made for employees who have not selected a preferred fund by completing a "Choice of Fund" form. Super funds are allowed to start offering MySuper default funds from 1st July, 2013.
New data and e-commerce standards will be introduced so contributions are sent to all funds in one standard electronic format. The implementation date will vary according to whether the employer has 20 or more employees. The Small Business Superannuation Clearing House will be available to help meet these obligations. Employers with an AUSkey will be able to check ABN, bank account and email addresses to support electronic payments and messages in the new standard.
The 2013-14 financial year will again see the optimal transition to retirement settings change. This is driven not only by the changes in the SG contribution level, but also by the minimum drawdowns reverting to standard level. However, we have a Budget to survive before thinking about those aspects!
The NetActuary Team