The super rate rises as of 1 July 2014
A very quick reminder to all … In the recent Federal Budget, the government confirmed the Superannuation Guarantee Rate will increase from 9.25% to 9.5% on 1 July 2014.
The plan (admittedly subject to the whim of the Government each Federal Budget) is that the rate will remain at 9.5% until 30 June 2018 and then increase by 0.5 percentage points each year until it reaches 12%. Tough watch this space!
CapitalQ Payroll Services = Hassel Free Payroll
Of course those Client’s for whom we handle their Payroll, we will deal with this change for you and simply advise you the modest additional super you will need to pay come October 2014.
Self-Serve Xero – The Next Best Thing
Similarly, if you run your business using Xero (as we highly recommend) there is also little you will have to do to implement this change as Xero will automatically account for the change for you (though we still recommend you check things in case the way you have set up your payroll limits the ability for automatic over ride by the Xero boffins).
However if you use any other system, or manage your Payroll manually, surely there aren’t still people doing this :), then we encourage you to make sure you are on top of the new requirement and address it yourself immediately on 1 July. Otherwise you could easily, inadvertently under pay your super obligations which –
- At best would require additional reporting (and payments) to the ATO (via Superannuation Guarantee Charge forms), or
- At worst result in penalties in the event the ATO identify the problem before we do!