Superannuation Update 2013 - Reporting and Legislation
Employer contributions for superannuation are set to increase. Over the next eight years incremental increases will see a rise from the current rate of 9% up to a rate of 12% in 2020.
Plan now to factor this into your remuneration strategies, wages costing and employee benefits plans. Ensure you are ready to meet the new reporting and compliance requirements.
Dixon Appointments’ guidelines for salary and wages advice will ensure you are prepared.
Legislative and Reporting Changes
From 1 July 2013 there is new superannuation and reporting obligations. Organisations should take into account the potential impact of changes in legislation and reporting which include:
- new pay slip obligations
- the removal of superannuation guarantee upper age limit
- new standards for data and e-commerce
What you need to know
New pay slip obligations
To give your employees more information about their super, in the future organisations will need to provide details on each employee's payslip about the super that has been paid into their account.
Removal of super guarantee upper age limit
As of 1 July 2013, there is no upper age limit for paying super for an employee. Removal of the limit is to encourage mature workers to stay in the workforce. This means you may need to make super guarantee payments for eligible employees 70 years old or older.
What you need to do
Check if you have any employees 70 years old or older who may be eligible to receive super payments. For those employees who are eligible, arrange to pay super contributions into their chosen fund from 1 July 2013.
Data and e-commerce standard
A data and e-commerce standard is being introduced that will make it possible for you to send contributions to all funds in one standard electronic form, removing the need to submit this information to separate funds in different formats. The standard will make processing easier and result in:
- fewer data quality issues
- a simpler, more consistent contribution process
- fewer lost accounts and unclaimed monies
- faster processing of employees' money into their super accounts
- lower overall processing costs
Employers with 20 or more employees must use the data and e-commerce standard from 1 July 2014. Employers with fewer than 20 employees will need to start using the standard from 1 July 2015, subject to further consultation.
What you need to do
If you prefer to process your superannuation contributions for staff yourself, you can work with your default superannuation fund or payroll supplier to meet the new data and e-commerce standard. Other partners, including accountants and clearing houses, will be able to help as well.
If you are a small business with 19 or fewer employees, the Small Business Superannuation Clearing House is available to help you meet your superannuation guarantee obligations.
Need further advice or assistance with your staffing? Contact Charlotte Garner at cgarner@dixonappointments.com.au or call 03 9629 9999.
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