News

Superannuation Guarantee Changes

As part of the Government's review and reform of employer paid superannuation contributions, as of 1 July 2013 the Superannuation Guarantee Rate will begin increasing year-on-year from its current 9% of gross "ordinary times earnings" to an eventual 12% by the year 2019/20.

However you calculate, record and pay your employees' superannuation guarantee, you must ensure that as of 1 July 2013, you use the new rate of 9.25%.

We have yet to be informed by accounting software providers like MYOB and Quicken/Quickbooks on whether they will incorporate an automatic correction in their end of financial year payroll update, however this only applies to people who use these kind of programs to manage their payroll. 

Regardless, BBA Accountants can show you how to manage this change and review your payroll record keeping to ensure it is quick, user friendly and compliant with government requirements. 

As an employer there are many legal obligations you must comply with including calculating your employees superannuation correctly and paying it on time.  If you fail to do so, YOU personally can be liable for a whole lot more money than just 9% of gross wages.   Refer to the "Information Kit for New Employers" on our website for a brief outline of some of your responsibilities and contact your Advisor at BBA for a detailed discussion about your situation.

Increasing the superannuation guarantee rate from
9 to 12 per cent

Year

Rate (%)

2013-14

9.25

2014-15

9.5

2015-16

10

2016-17

10.5

2017-18

11

2018-19

11.5

2019-20

12