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Melbourne HR Consulting Firm’s Note to SMEs – Superannuation Changes Are Imminent
HR can be a time consuming activity for even the most organised business owner. Business owners often struggling to keep up with HR activities and with the upcoming Superannuation changes, business owners need to be aware of what is coming up.
By: fibreHR, HR Consultancy, Melbourne
fibreHR, a HR consulting firm in Melbourne, has provided a comprehensive list of what every Business Owner needs to know.
1. Superannuation contributions
The main change to super arrangements is that compulsory employer contributions will rise from 9% to 12% incrementally over the next seven years.
Current rate 9%
1st July 2013 9.25%
1st July 2014 9.50%
1st July 2015 10.00%
1st July 2016 10.50%
1st July 2017 11.00%
1st July 2018 11.50%
1st July 2018 onwards 12.00%
2. Removal of the upper age limit
Where previously compulsory super contributions stopped once an employee reached the age of 70, under the new legislation, there is no upper age limit - which means that employers will need to continue paying compulsory superannuation contributions as long as the employee is working.
3. Payslip changes
Currently it is mandatory that payslips show the number of superannuation payments and the amount accrued to date. If you haven’t already, you will need to ensure that your employees’ payslips display the following information:
· The name of the super fund they are contributing to
· The dates of the next contribution to be made
· The amount of all the contributions made, including any upcoming payments
· The time period during which any contributions were made
4. My Super
The new MySuper product is a single standardised default super product that can be offered by different superannuation funds. It is designed to modernise and streamline the superannuation process, and make it easier for employees who don’t nominate a specific super fund to their employer.
5. Director Responsibilities
As part of the new legislation, company directors are to be held more accountable for any lack of compliance on the part of their business, especially in making payments to superannuation funds. Where previously there were limitations on the responsibility of directors in certain circumstances, these have now been addressed and accountability has been increased.
As the director of a company, you are personally responsible for any non-compliance with the new superannuation legislation. This means that you can personally face fines if your business doesn’t follow the new superannuation rules. The amount you will need to pay if you have failed to make sufficient contributions will be the same as the amount of the outstanding contribution.
6. Data and ecommerce standard
A new data and e-commerce standard is also being introduced to make arrangements for employers to send contributions to all superannuation funds in one standard electronic format. In future, employers will no longer need to provide this information to separate funds in different formats.
“Being up to speed with these superannuation changes means that businesses will avoid fines, if in doubt seek advice,” said Lisa Spiden, Director, fibreHR.