The Australian Taxation Office has urged employers in the retail industry to familiarise and make the necessary changes to prepare themselves with their new super obligations.
From July 1, all employers must increase their compulsory super payments from 9 per cent to 9.25 per cent. By July 1, 2019 this rate will increase to 12 per cent.
The existing upper age limit for employee super guarantee eligibility will also be removed this July so employers will need to begin paying super for eligible employees who are aged 70 years or over.
Alison Lendon, ATO deputy commissioner, Superannuation, said the administrative changes to super guarantee coming into effect on 1 July this year are relatively straightforward for employers.
“Software and payroll providers already have scheduled system changes and release processes to ensure employers will be ready for the 1 July 2013 SG changes,” she said.
Funds will also begin offering MySuper products that will replace existing default super fund products.
For most employers, it is expected that their existing default fund will offer a MySuper product,” she said.
“These employers will not have to make any change to the payment of superannuation guarantee contributions. Your fund should contact you to advise that they will offer MySuper product and any changes to the entitlements of your employees.
“If you are unsure, or want more information on the MySuper product offered by your default fund, you should contact the fund.”
The ATO has also said the superannuation data and e-commerce standard is being introduced to make it possible for employers to send contributions to all funds in one standard electronic format. The benefits of a standard format includes reduced processing time and costs.
It will be part of the government’s SuperStream measures to ensure all movements of money within the super system are transferred electronically.
“The standard is about moving super into the 21st century and removing much of the administrative burden and the inefficiencies faced by employers,” Lendon said.
“The goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of contributions and reduce the number of lost accounts and unclaimed monies.”