The ATO is urging all employers to ensure they have implemented the Superannuation Guarantee (SG) rate rise which increased to 9.5 per cent on 1 July 2014.
Employers must now increase the compulsory super contributions they make on behalf of their employees from 9.25 per cent to 9.5 per cent.
Some employers may be confused about the increase, following pre-election promises from the Federal Government that the rise would be deferred.
The Federal Government couldn’t the pass legislation through the Senate in time to freeze the SG at 9.25 per cent, resulting in the previous government’s legislation of a SG rise to 9.5 per cent legally binding.
Subsequently, the rate will remain at 9.5 per cent until 30 June 2018 and then increase by 0.5 percentage points each year until it reaches 12 per cent.
Employers can ensure they meet their obligations by accurately calculating super guarantee for pay periods that cross over 1 July and apply the rate rise to salary and wage payments after 30 June.
“Super contributions are calculated on the date you pay your employees. If this date was on 1 July or after, then you will need to use the new super guarantee rate,” Emma Haines, ATO Assistant Commissioner said.
“Employers can use the ATO’s online superannuation guarantee contributions calculator to work out how much super they must contribute for eligible workers.”
Small businesses are encouraged to use the ATO’s free Small Business Superannuation Clearing House service to help meet their super guarantee obligations. The Small Business Superannuation Clearing House lets you pay your superannuation contributions in one transaction, to a single location; helping to make the process easier.
“If you have 19 employees or fewer, you can use this free service to pay your super contributions in one transaction,” Ms Haines said.
For more information about super guarantee visit www.ato.gov.au/employersuper or seek help from your superannuation service provider.
