From 1 July 2013, the super guarantee rate increases to 9.25% and the upper age limit is removed. For those of you who employ staff aged 70 years and over, you might need to start making super contribution to the funds of the eligible staff from 1 July 2013. Therefore, it is important to check your staffs’ eligibility to ensure compliance.
As an employer, it is your responsibility to ensure that your payroll and accounting system is updated to apply the appropriate increase in the super guarantee rate on 1 July. Currently, the Government’s plan is to gradually increase this rate every year by 0.25% until it reaches 12% in 2019. However, the Coalition had announce that if they win the federal election, they will defer these increases for another two years.
If you have an employee salary sacrificing to their superannuation, make sure the increased super guarantee rate is considered into your calculation and remember not to exceed the $25,000 contributions cap.