From 1 July 2013, the superannuation contribution rate has being increased from 9% to 9.25%. Employers will need to make the contribution for their employees using the new rate. Generally an employer has to pay superannuation:
- 18 years or older
- Pay them $450 or more (before tax) in salary or wages in a month.
- Younger than 18 years
- Pay them $450 or more (before tax) in salary or wages in a month.
- Worked at least 30 hours per week.
Superannuation must be made for each eligible employee at least 4 times a year. The payments must also be made by the following cut-off dates.
| Quarter | Period | Payment cut-off date |
|---|---|---|
| 1 | 1 July – 30 September | 28-Oct |
| 2 | 1 October – 31 December | 28-Jan |
| 3 | 1 January – 31 March | 28-Apr |
| 4 | 1 April – 30 June | 28-Jul |
As an employer, you must keep proper superannuation records for up to 5 years. The audit trail that you need to keep:
- Amount of super paid to each employee.
- Any other documents that helped you to calculate the amount of superannuation that you paid.
Record compliance is often the most basic and fundamental requirements of anyone who owns a business and / or employs staff. Failure to comply can result in massive penalties to the ATO. This is not only costly but also detrimental to the reputation of the business.