Australia Increases Super (Superannuation Guarantee), the Required Employer Retirement Contribution Rate

Australia Increases Super (Superannuation Guarantee), the Required Employer Retirement Contribution Rate

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  Australia Increases Super(Superannuation Guarantee), the Required Employer Retirement Contribution Rate (Bristol, UK) - The Australian government has announced significant changes to the Super regime. Super contributions will eventually increase to 12% by 2020, reports Nair & Co.’s International HR Team. Super refers to the funds arranged by employers to secure employees’ retirement and Superannuation Guarantee is the official term for obligatory contributions made by employers. The required employer Super contribution is set at 9.25% with a cap of A$192,160 for fiscal year 2013-14. Certain criteria are set for employee eligibility towards Super:    Employees under 18 years of age must  Work more than 30 hours per week.  Earn A$450 or more every month (before tax). Employees over 18 years of age must  Work full-time, part-time or on a contract basis.  Earn A$450 or more every month (before tax). Employer contributions are not required when an employee is away from work without pay. Employers are advised to be aware of their Super obligations and related requirements:     Super contribution rate will increase by 0.5% annually:  FY2014-2015, the rate will be 9.5%  FY2015-2016, the rate will be 10%  FY 2016-2017, the rate will be 10.5%  FY2017-2018, the rate will be 11%  FY2018-2019, the rate will be 11.5%  FY2019-2020, the rate will be 12% From 1 January 2014, all contributions will be must be made into a MySuper authorized fund. Employers are responsible for maintaining records with regard to when and how contributions are made. Contributions made by the employer within the acceptable time limits are tax deductible. For more information about doing business overseas or to know more about ourInternational Payroll Services team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co.
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  Nair & Co.,the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-pointof-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at [email protected] or call Yvonne Smith at +1.408.501.8867