29th May, 2015
Starting a business is never easy. Understanding all the legal requirements is even harder, let alone a business owner’s obligations regarding pay, benefits, and one of the most important payments for employees – superannuation.
Understanding superannuation can seem overwhelming for new employers. But it’s actually simpler than you think. You just need to understand a few core concepts:
These records need to detail which super funds to which you’re paying super contributions, the amount you paid, when they were paid and the period covered by the super payment.
And in the event that an employment contract is terminated, records need to be kept including whether the termination was by consent, by notice, or through any other way.
Can your employees choose their super fund? Some awards and agreements don’t allow employees to choose their own.
Employers need to provide a standard choice form to eligible employees who want to choose a super fund. If you need to read more on standard choice forms, head over to the ATO website.
Back in 2013, the Government introduced Mysuper as a default super fund. Last year, it became mandatory to pay super contributions into a MySuper fund unless an employee selects their own preferred fund.
As an employer, you need to check that your default super fund is a MySuper fund. The benefits are clear, including simpler administration, up to a 40 percent decrease in super fees and features designed specifically for members.
From 1 July 2015, businesses need to adhere to a new standard called SuperStream. This simplifies the way superannuation contributions are reported to the government – and it saves employers a lot of time. You can learn more about SuperStream here.
Over the past several years there have been a number of changes when it comes to the superannuation rate. But here’s what you need to know:
1 July 2015: 9.5 percent
1 July 2021: 10 percent
1 July 2023: 11 percent
1 July 2024: 11.5 percent
1 July 2025: 12 percent
Superannuation payments to your employers are due every quarter. Here are the corresponding due dates for each quarterly period:
Quarter 1, 1 July – 30 September: Due 28 October
Quarter 2, 1 October – 31 December: Due 28 January
Quarter 3, 1 January – 31 March: Due 28 April
Quarter 4, 1 April – 30 June: Due 28 July
Want to read more? Download our easy guide to superannuation to get started.