Stay on track with super payments

As an employer you’re required to make Super Guarantee (SG) contributions for your eligible employees at least once a quarter. If you don’t meet your obligations then you will incur the SG charge levied by the Australian Taxation Office. This section sets out the key responsibilities you as an employer should be aware of.

How the government is reforming super

Stronger Super

Stronger Super is a Government initiative designed to ensure the Australian superannuation system delivers better retirement income for members and operates more efficiently. It contains a number of initiatives such as MySuper and SuperStream as well as changes to the governance of super. The key change for employers will be a requirement to send employee data and payments electronically.

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SuperStream is part of the Australian Government’s Stronger Super Reforms. Its focus is on improving the ‘back office’ of super by making everyday super transactions easier, cheaper, faster and more efficient.  SuperStream provides a simpler, consistent method for making super contributions, providing associated data and registering new employee super accounts. It should also ensure fewer lost and duplicated accounts and faster allocation of money into employees’ accounts.

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MySuper is a simple, cost-effective default super product that provides death and total and permanent disablement insurance to its members. Generally, from 1 January 2014, for those employees who have not chosen their own fund, employers must make their Super Guarantee contributions to a super fund which offers a MySuper product.

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Join over 23,000 employers using BT Super

BT Super is offered by BT Financial Group, the wealth management arm of The Westpac Group. We’re one of the largest administrator of super, retirement and investments in Australia.

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Super Guarantee (SG)

Super Guarantee (SG) is the term for the compulsory contributions employers must make on behalf of their eligible employees. From July 2014, employers are required to pay Super Guarantee at a rate of 9.5% on employee’s ordinary time earnings*. The SG rate is not set to rise again until July 2021.

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Tax File Numbers (TFN)

When a new employee joins your company, you must pass on their Tax File Number (TFN) to their super fund within 14 days of receiving it or when you make the first contribution on their behalf. The ATO may apply penalties to an employer who does not pass on an employee’s TFN to the relevant super fund.

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Choice of fund requirements

Most employers are required to choose a “default” super fund into which they contribute their employees’ Super Guarantee contributions. However, depending on the award or agreement your employees are employed under, your employees may be allowed to choose the super fund to which you make Super Guarantee contributions. There are certain occasions where you may refuse an employee’s choice and there are time limits on how soon you must make contributions into their chosen fund.

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Policy Committee

Employers with 50 or more employees are required to establish policy committees for employer-sponsored super funds. A policy committee can also be formed where there are less than 50 employees if asked by your employees.  Policy committees can be very useful as they act as forums for you and your employees to review your super plan and provide feedback.

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Salary Sacrifice

Employees may request a salary sacrifice arrangement in order to boost their super contributions and save more for retirement. A salary sacrifice arrangement is where an employee requests their employer to direct part of their future pre-tax salary or wages as an extra contribution to their super. As an employer you may want to offer salary packaging as an incentive to attract and retain staff.

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Modern Awards

Modern Awards are a set of industry or occupation based arrangements that outline minimum wages and conditions of employment. From 1 January 2010, 122 Modern Awards replaced thousands of state and federal awards. Each Modern Award lists super funds that can be used as the default fund for employees covered by that award.

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