Superannuation Guarantee Reforms 2013 – What you need to do.

David Balwin
CPA | Accountant | Business Advisor

You may or may not have heard, the Commonwealth Government has introduced changes to the Superannuation Guarantee which take effect from 1 July 2013.  As a business owner, you have to take action to comply with the new requirements.  The main changes of the reforms are:

• the superannuation guarantee rate will gradually increase from 9% to 12% between 1 July 2013 and 1 July 2019
• the superannuation guarantee age limit of 70 will be removed from 1 July 2013, and employers will be required to contribute to complying super funds of eligible mature age employees 70 years old and older.

Therefore, when super payments are made on behalf of your employees based on the minimum 9% super guarantee rate, employers will need to increase this rate on which calculations are based to 9.25% on 1 July 2013.

The super guarantee rate increases to 12% over seven years, as shown in the table below.

To ensure employers comply with the changes, make sure:

• Payroll and accounting systems are updated to apply the appropriate increase to the super guarantee rate.
• From 1 July 2013, the rate used to work out the super guarantee payments for employees is increased from 9% to 9.25%.
• The rate used to work out the super guarantee payments made for employees continues to increase each year until 1 July 2019.

If you need help to comply with the changes, please call the Balanix Team (3264 4783)  – we can help!