The Australian Taxation Office (ATO) is reminding employers of the increased superannuation guarantee rate
Employers who make quarterly superannuation payments on behalf of their staff should be aware that the super guarantee rate, of 1 July 2014, increased from 9.25 per cent to 9.5 per cent.
“Employers must pay super guarantee contributions for each eligible employee at least four times a year, and the first quarterly contributions need to be paid by 28 October,” said Emma Haines, ATO assistant commissioner.
The ATO is offering businesses with less than 19 staff members a free Small Business Superannuation Clearing House service, allowing employers to pay super contributions in one transaction, to a single location.
Some employers may be confused about the increase, following pre-election promises from the Federal Government that the rise would be deferred. The Government couldn’t pass the legislation through the Senate in time to freeze the super guarantee at 9.25 per cent, so the rise to 9.5 per cent is now
The Government has announced that the rate will remain at 9.5 per cent until 30 June 2018, and then increase by 0.5 percentage points each year until it reaches 12 per cent.