Talking Cents

Superannuation tips from small accounting firm in Melbourne

As your small business accountants in Melbourne we wanted to recap on some key area is in superannuation. In recent times the ATO has gone to great lengths to inform business owners of their superannuation obligations to their employees and the rate of audits for non-paying employers seems to be on the rise. Here are some key points regarding superannuation for employees:

• All employers must pay superannuation contributions on behalf of eligible employees and these contributions must be paid into a complying superannuation fund.
• Employees that you are required to pay superannuation for are those who earn more than $450.00 in a calendar month and aged between 18 and 69. For workers under 18 years of age, superannuation only need be paid if the employee works at least 30 hours per week.
• The current rate of superannuation is nine per cent of ordinary time earnings. Recent legislation has been passed that will see this rate increase in a staggered manner to eventually reach 12 per cent on 1 July 2019.
• Payments must be made on a quarterly basis, 28 days after the end of each three month period. i.e. 28 July, 28 October, 28 January and 28 April of each year.
• Employers must offer each employee the right to have their superannuation paid into a fund of their choice. If the employee does not elect to choose a fund, then the employer can elect to use a standard default fund.

Any accountant in Melbourne will tell you the importance of getting your employees superannuation right, so don’t hesitate to call m.a.s for any questions you may have.