An easy guide to superannuation for new employers

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Starting a business is never easy. Understanding all the legal requirements is even harder, let alone a business owner’s obligations regarding pay, benefits, and one of the most important payments for employees – superannuation.

Understanding superannuation can seem overwhelming for new employers. But it’s actually simpler than you think. You just need to understand a few core concepts:

You need to keep detailed records

These records need to detail which super funds to which you’re paying super contributions, the amount you paid, when they were paid and the period covered by the super payment.

And in the event that an employment contract is terminated, records need to be kept including whether the termination was by consent, by notice, or through any other way.

The choice of super fund

Can your employees choose their super fund? Some awards and agreements don’t allow employees to choose their own.

Employers need to provide a standard choice form to eligible employees who want to choose a super fund. If you need to read more on standard choice forms, head over to the ATO website.

Understand MySuper

Back in 2013, the Government introduced Mysuper as a default super fund. Last year, it became mandatory to pay super contributions into a MySuper fund unless an employee selects their own preferred fund.

As an employer, you need to check that your default super fund is a MySuper fund. The benefits are clear, including simpler administration, up to a 40% decrease in super fees and features designed specifically for members.

SuperStream it!

From 1 July 2015, businesses need to adhere to a new standard called SuperStream. This simplifies the way superannuation contributions are reported to the government – and it saves employers a lot of time. You can learn more about SuperStream here.

Understanding the superannuation rate

Over the past several years there have been a number of changes when it comes to the superannuation rate. But here’s what you need to know:

1 July 2015: 9.5%
1 July 2021: 10%
1 July 2023: 11%
1 July 2024: 11.5%
1 July 2025: 12%

When do I need to pay super?

Superannuation payments to your employers are due every quarter. Here are the corresponding due dates for each quarterly period:

Quarter 1, 1 July – 30 September: Due 28 October
Quarter 2, 1 October – 31 December: Due 28 January
Quarter 3, 1 January – 31 March: Due 28 April
Quarter 4, 1 April – 30 June: Due 28 July

Want to read more? Download our easy guide to superannuation to get started.

Subscribing or upgrading your MYOB software will ensure your business is always compliant with tax changes, including the government’s new SuperStream system for paying super contributions.

Learn how to make SuperStream super easy

Find out everything you need to stay compliant with the latest ATO reforms.

Learn more
  • http://www.assetmanagerpro.com.au/ Liam Barnard

    I am a qualified accountant. I work as business consultant for small and medium sized enterprises. It surprises me when I come across businesses every now and then which don’t use computerized accounting packages or spreadsheets with valuable software out there like AssetManager Pro, to enable smooth running using effective bookkeeping, I sometimes don’t understand why businesses don’t take the opportunity to invest a little and reap benefits in the long run. Small or large, all businesses should have this sort of mechanism to maintain accurate and comprehensive records. It helps stay organized, up-to-date and allows for easier and quicker tax returns. Personally, I think that apart from saving money, this helps the business follow a systematic process of growth.