One important changes all employers should be aware of relates to superannuation. The changes to the superannuation regime increase employers’ superannuation obligations starting from 1 July 2013 to compulsory contributions of 9.25%.
The changes introduced by way of the Superannuation Guarantee (Administration) Amendment Bill 2011 means that compulsory superannuation guarantee contributions will increase over a seven year period, from the current rate of 9% to 12%.
The increases will be gradual, as follows:
Income year Charge percentage
Starting 1 July 2013-2014 9.25%
Starting 1 July 2014-2015 9.5%
Starting 1 July 2015-2016 10%
Starting 1 July 2016-2017 10.5%
Starting 1 July 2017-2018 11%
Starting 1 July 2018-2019 11.5%
Starting 1 July 2019-2020 12%
The Act also has an impact for employers when it comes to paying superannuation guarantee contributions to employees over the age of 75. Currently, employers are not obliged to make payments in respect of employees who are age 70 and over. However, from 1 July 2013 employers will be obliged to make superannuation contributions for all their employees. The changes will also ensure that employers will be able to claim income tax deductions for superannuation guarantee contributions made to employees aged 70 and over from 1 July 2013.