Australia Increases Super (Superannuation Guarantee), the Required Employer Retirement Contribution Rate (Bristol, UK) - The Australian government has announced significant changes to the Super regime. Super contributions will eventually increase to 12% by 2020, reports Nair & Co.’s International HR Team. Super refers to the funds arranged by employers to secure employees’ retirement and Superannuation Guarantee is the official term for obligatory contributions made by employers. The required employer Super contribution is set at 9.25% with a cap of A$192,160 for fiscal year 2013-14. Certain criteria are set for employee eligibility towards Super:
Employees under 18 years of age must Work more than 30 hours per week. Earn A$450 or more every month (before tax). Employees over 18 years of age must Work full-time, part-time or on a contract basis. Earn A$450 or more every month (before tax). Employer contributions are not required when an employee is away from work without pay.
Employers are advised to be aware of their Super obligations and related requirements:
Super contribution rate will increase by 0.5% annually: FY2014-2015, the rate will be 9.5% FY2015-2016, the rate will be 10% FY 2016-2017, the rate will be 10.5% FY2017-2018, the rate will be 11% FY2018-2019, the rate will be 11.5% FY2019-2020, the rate will be 12% From 1 January 2014, all contributions will be must be made into a MySuper authorized fund. Employers are responsible for maintaining records with regard to when and how contributions are made. Contributions made by the employer within the acceptable time limits are tax deductible.
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