REMEMBER TO INCREASE YOUR EMPLOYEE SUPERANNUATION PAYMENTS!

27.04.2013 22:27

From 1 July 2013, the Superannuation Guarantee rate paid on behalf of all employees rises from 9.0% to 9.25%.

Further, payments must now also be made on behalf of employees who are 70 years of age or older. This is a new requirement.

This rise in the Superannuation Guarantee rate is the first of many with rises occurring annually up to an including 1 July 2019. This will result in the Superannuation Guarantee rate increasing to 12%.

The new rate of 9.25% will take effect with, and will be calculated from, the first remunerations paid on or after 1 July 2013.

This new measure will have a small impact on the cashflow of employers but it is important that they get it right. Underpaying Superannuation Guarantee amounts results in a significant and almost draconian penalty regime which is best avoided at all costs.

With the Superannuation Guarantee rate rising from 9% to 12%, and with more people being eligible for inclusion over the coming years, it is important that businesses plan properly for the impacts. Morgan Reynolds can help you with your strategic planning needs, not only to ensure compliance with your Superannuation Guarantee obligations but also with your entire business strategic planning issues.