The Australian Taxation Office (ATO) has identified that employers working in the industries listed have a higher chance of not completing the superannuation obligations for their employees:
- beauty and hairdressing;
- retailing of clothing; and
- consultation and management advice.
The ATO has started an educational campaign specifically for business owners in these industries to help them clearly understand the superannuation obligations they have.
Further more, from Jul 2014, the ATO will undertake audits of employers who continually do not meet their superannuation obligations for the employees they have, including:
paying the minimum superannuation contributions each quarter (and/or lodgement of SGC statement);
offering their employees (and/or contractors) the choice of super fund;
accurate record keeping; and
passing on the TFN of the employee to their superannuation fund as required.
Super obligation changes for employers
From 1 Jul 2013 employers across Australia will have new super guarantee obligations under a range of government reforms that are being implemented from 2013 to 2019.
From 1 Jul 2013 employers must increase the minimum super guarantee payment rate on behalf of employees from 9.00% to 9.25%.
The super guarantee rate will then gradually increase from 9% to 12% between 1 July 2013 and 1 July 2028. (originally was going to be 12% by 2019)
Also, employers must make superannuation guarantee contributions for older employees that are aged 70 plus years with the removal of the previous upper age limitation. Employers may need to look at updating their systems and processes to incorporate these impending changes.
Small Business Superannuation Clearing House
The government is offering a free superannuation clearing house service to small businesses with 19 or less employees or annual aggregated turnover of less than $10 million. This service is optional and is designed to reduce red tape and compliance costs for small businesses, when meeting their superannuation guarantee obligations. The Small Business Superannuation Clearing House is accessed via myGov and lets employers pay their superannuation contributions to a single location in one simple electronic transaction.
Contact Solve Accountants located on the Gold Coast, Qld Australia if you need help with your business tax.