There are some changes to super contributions coming up which all employers/payroll staff need to keep up to date with!
Firstly, the Federal Government have confirmed that the superannuation guarantee will increase to 10% starting on 1 July 2021. To see more about the proposed increase to super contributions, you can also visit the ATO website here.
Secondly, the ‘Your Future, Your Super’ Bill, which is yet to be passed by Parliament, also has some key proposed changes to how employers should pay super contributions set to come into effect on 1 July 2021.
The proposed law will mean that employees will have a ‘stapled’ superfund, which will follow them as they move workplaces. The new change is aimed to reduce an employee having multiple superfunds by selecting a single fund that employers will make contributions to. The changes mean that if an employee has a ‘stapled fund’, the employer cannot make contributions to a default fund or a fund under an enterprise agreement. These changes are aimed at any employee who starts working on or after 1 July 2021 and have not chosen a fund to receive super contributions. To find out whether an employee has a stapled fund or not, employers will be able to be ask the Commissioner to check. The bill proposing these changes is yet to be passed – so there may be more updates to come in this space!
What does this mean for you?
These changes to super come alongside the recent changes to the minimum wage and award rates: see the blog here. Therefore, there are a number of updates for payroll to consider before the new financial year.
These may include checking:
- Whether your payroll process is set to increase super contributions,
- Whether you have employees on an award wage or minimum wage who may have their wages increased
- What industry the award falls into and what the start date for wage changes may be
As always, if you have questions about how to sort through these changes and what it may mean for your business – let us know!