Changes to superannuation
Super guarantee contributions for employees aged over 70
As foreshadowed in our December newsletter, the superannuation guarantee maximum age limit of 70 has been removed, effective from 1 July 2013, resulting in a requirement for employers to contribute to complying super funds of eligible mature workers aged 70 and older. Significantly, from 1 July 2013 employers will be able to claim income tax deductions for super guarantee contributions made for employees aged 75 and over.
Increase in superannuation guarantee
In order to increase the future retirement income of Australian workers, this legislation will gradually increase the superannuation guarantee charge from the current 9% to 12% in the 2019/2020 year, in the following increments:
Until 30 June 2013
The above should be taken into account in wage negotiations with staff.
Possible changes to superannuation contributions reporting
The government has proposed an amendment to the reporting requirements for superannuation contributions to include the amount of contributions and the date on which the employer expects to pay them on the employees’ payslips. This measure still has a way to go before it becomes law, but it does highlight the importance of keeping your payroll software such as MYOB current and up to date.