As we are now well and truly into the new financial year, it’s a great opportunity for you to consider the financial year ahead. Here’s a “super” outline of what’s happening in super to help you and your business prepare for the financial year ahead.
Superannuation Guarantee (SG) payment amount has increased
The SG minimum payment amount increased to 9.5% on 1 July 2014. As part of the Federal Budget 2014, the Government has announced that it will change the schedule for increasing the SG amount. It is proposed to maintain the current 9.5% amount to 30 June 2018 and gradually increase to 12% from 1 July 2022. Please note that the announcement to change the SG schedule has not been legislated.
Don’t forget the Super Contributions Cap
As a reminder, the superannuation contributions cap effect employees based on individual circumstances. However, it’s important to be aware from an employer’s perspective what contributions cap applies to employer super contributions (especially when salary sacrifice contributions are also involved), so as to assist your employees keep an eye out on their contributions cap. This can help your employees avoid paying any additional penalty tax on contributions that exceed the cap.
The concessional contribution caps (including SG, salary sacrifice and employer additional contributions) for the current financial year (1 July 2014 to 30 June 2015) are as follows:
- General cap - $30,000 (new indexed amount)
- Individuals aged 50 and over - $35,000
A quick recap on the Government Data and Payment Standard for employers
The new Government Data and Payment requirements for employers commenced on 1 July 2014 and will eventually require all employers to make super payments and send the applicable payment data electronically.
Medium to large employers (having 20 or more employees) can commence electronic data and payments from 1 July 2014 and must have the new requirements in place by 1 July 2015.
Smaller employers (having 19 or less employees) can commence from 1 July 2015 and must have the new requirements in place by 1 July 2016.
It’s important to consider your options and start planning now (if you haven’t already started) to ensure you’re able to comply and meet the upcoming requirements by necessary timeframes. NESS Super can help employers meet the new requirements, see below.
The NESS Super Clearing House facility is up and running
NESS Super is providing participating employers who are registered for electronic payments (via EmployerAccess and SCH Online) the ability to pay all their super contributions (in addition to NESS Super) and send payment information, through the one secure website.
SCH Online was launched in May 2014 and is assisting employers by saving time and resources. Most importantly, it’s also helping employers meet the new data and payment requirements.
This is guest article by simPRO partner: NESS Super
NESS Super is the superannuation fund totally dedicated to the electrical, communications and technology industry.
To learn more contact NESS Super’s service representative:
Mynas Leontios: 0448 432 443 or firstname.lastname@example.org
The information contained in this article is up-to-date at the time of its publication. However, some information can change over time. The contents are for general information only and do not constitute personal advice. We recommend that you consult with a suitably qualified person before making any financial decisions.