Don’t forget – increase in employer Super obligations
As of 1 July 2013, the minimum superannuation contribution required to be paid by employers increased to 9.25%.
Up until 1 July, employers were obligated to pay 9% of the ordinary time earnings of their employees, including part time and casual employees, who are aged between 18 and 75 and who are paid $450.00 (before tax) a month.
Apart from the jump to 9.25%, there will no longer be an age limit on employees that employers have superannuation guarantee obligations.
It is important to note that in addition to complying with superannuation guarantee rules, employers must also comply with requirements in any applicable Awards or Agreements. Where an Award or Agreement has superannuation entitlements that are more beneficial than those prescribed by the Act, the employer is required to comply with these minimum provisions.
Employer contributions must be made by the 28th day following the end of each quarter. If an employer fails to make the minimum super contribution for the quarter they will be liable to pay a charge to the tax office.
If you have any questions in relation to the increase in the Superannuation Guarantee contribution then contact the team at Osborn Jensen.