Super Changes for Employers
There have been a few recent changes to super law which will impact on your obligations as an employer. Some of these changes will also affect your employees.
From 1 July 2008
- Ordinary time earnings as defined in the super guarantee law are the basis for calculating super contributions for all employees.
- Your employer nominated super fund (your default fund) must offer minimum levels of life insurance death cover to members.
From 24 June 2008
- You will generally be able to offset super guarantee contributions that are paid late to a super fund.
Since 1 July 2007
- When an employee gives you a Tax file number declaration form, you must pass their tax file number (TFN) on to their super fund.
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You can claim a full tax deduction for all contributions you make to super funds on behalf of your employees, provided certain conditions are met.
- If you are self-employed, you can claim a full deduction for personal super contributions you make, provided certain conditions are met.
- If you are self-employed you may be eligible for super co-contributions.
Proposed changes
Some other proposed changes include:
- $16 million for super clearing house to slash business red tape
- Payment of temporary residents’ superannuation to the Australian Government (this bill has now been passed).
More information
If you require further information on your obligations as an employer you should really speak with your accountant or other qualified advisor. Alternatively, you can contact a Tax Officer at the ATO on 13 10 20.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.