Employers are being reminded they need to increase the compulsory minimum super payments they make on behalf of eligible employees.
From July 1, 2014 the super guarantee increased from 9.25 per cent to 9.5 per cent.
“Super contributions are calculated on the date you pay your employees. If this date was on July 1 or after, then you will need to use the new super guarantee rate,”
Australian Taxation Office (ATO) assistant commissioner Emma Haines said.
The ATO has acknowledged some employers may be confused about the increase, following pre-election promises from the Federal Government the rise would be deferred.
However, the government couldn’t pass the legislation through the Senate in time to freeze the super guarantee at 9.25 per cent, so the rise to 9.5 per cent is now legally binding, as reported byDynamic Business.
The government has announced the rate will remain at 9.5 per cent until 2018 and then increase by 0.5 percentage points each year until it reaches 12 per cent.
For employers with 19 or less employees, the ATO’s free Small Business Superannuation Clearing House service allows users to pay their superannuation contributions in one transaction, to a single location.