Employers reminded of new SG rate
The Australian Taxation Office (ATO) has issued a reminder that employers need to increase the compulsory minimum superannuation payments on behalf of employees from July 1.
The superannuation guarantee (SG) rose from 9.25 per cent to 9.5 per cent.
"Some employers may be confused about the increase, following pre-election promises from the Federal Government that the rise would be deferred," the ATO said.
"The Federal Government couldn't pass legislation through the Senate in time to freeze the SG at 9.25 per cent, resulting in the previous government's legislation of a SG rise to 9.5 per cent legally binding."
The contributions are calculated on the date employers pay their employees. Therefore if this was on or after 1 July, employers need to use the new rate.
The ATO encouraged small businesses that have 19 employees or less to use the free small business superannuation clearing house service, where they can pay their SG in one transaction in one location.
The SG rate will stay at 9.5 per cent until 30 June 2018, and will rise by 0.5 percentage points each year until it hits 12 per cent.
AUTHOR
Malavika Santhebennur
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