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Changes to superannuation

As a result of the Minerals Resource Rent Tax being passed by both Houses, the following complementary measures will also come into effect from 1 July 2013:

Super guarantee contributions for employees aged over 70

As foreshadowed in our December newsletter, the superannuation guarantee maximum age limit of 70 has been removed, effective from 1 July 2013, resulting in a requirement for employers to contribute to complying super funds of eligible mature workers aged 70 and older. Significantly, from 1 July 2013 employers will be able to claim income tax deductions for super guarantee contributions made for employees aged 75 and over.

Increase in superannuation guarantee

In order to increase the future retirement income of Australian workers, this legislation will gradually increase the superannuation guarantee charge from the current 9% to 12% in the 2019/2020 year, in the following increments:

Year

Superannuation guarantee

Until 30 June 2013

9%

2013/2014

9.25%

2014/2015

9.5%

2015/2016

10%

2016/2017

10.5%

2017/2018

11%

2018/2019

11.5%

2019/2020

12%

The above should be taken into account in wage negotiations with staff.

Possible changes to superannuation contributions reporting

The government has proposed an amendment to the reporting requirements for superannuation contributions to include the amount of contributions and the date on which the employer expects to pay them on the employees’ payslips. This measure still has a way to go before it becomes law, but it does highlight the importance of keeping your payroll software such as MYOB current and up to date.

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