The Australian Taxation Office (ATO) reminds employers that the super guarantee rate has increased from 9.25 per cent to 9.5 per cent effective 1 July. Consequently, employers will need to increase the compulsory minimum super payments they make on behalf of eligible employees.
Emma Haines, ATO Assistant Commissioner explains that super contributions are calculated on the date an employer pays their employees. If this date was on 1 July or after, they will need to follow the new super guarantee rate.
According to Ms Haines, employers can use the ATO’s online superannuation guarantee contributions calculator to work out the super amount they must contribute for eligible workers.
Small businesses are encouraged to use the ATO’s free Small Business Superannuation Clearing House service to help meet their super guarantee obligations. The Small Business Superannuation Clearing House lets employers pay their superannuation contributions in one transaction to a single location, simplifying the process.
This free service can be used by businesses with 19 employees or fewer to pay their super contributions in one transaction.