Media Release: Prime Super
Date: Friday 28 February 2014
Do the Right Thing!
In late 2013 the Fair Work Ombudsman conducted surprise visits to strawberry farms in Caboolture, QLD resulting in fines to a number of businesses for failure to meet their obligations under workplace law. As a timely reminder to all Victorian and Tasmanian farmers and growers, Prime Super’s Rod Stewart wants to help ensure that employers also understand their super obligations and the penalties for non-compliance.
Be aware that:
· Each time an employee reports that an employer has not paid their superannuation Guarantee (SG) contributions the ATO investigates. The ATO expects to contact around 12,000 employers this year as a result of these complaints.
· SG must be paid to all employees aged over 18 years who earn $450 or more (before-tax) in a calendar month.
· SG must be paid to all employees under 18 years who earn $450 or more (before-tax) in a calendar month, and work 30 hours or more in a week.
· SG must be paid to contractors if the contact (including a verbal or written contract) is wholly or principally for labour.
· SG must be paid to temporary Australian residents who meet any of the above conditions.
· The current SG rate is 9.25%. As legislation currently stands this should increase to 9.5% on 1 July 2014, however the present federal government have said that they will delay this increase until 2016. Keep abreast of up-to-date information on this proposed change at the ATO website: www.ato.gov.au.
· SG must be paid at least four times each year. The cut-off date for payment is the 28th of the month following the end of the quarter (i.e. 28 October, 28 January, 28 April and 28 July).
Employers are liable for an SG charge (essentially a fine) if they fail to comply. This also applies if an employer does not pay super to each of their employee’s chosen super fund (known as the choice liability).
Changes have also come about through the recent Stronger Super reforms, including:
· Employers are now only able to offer an approved MySuper product as their default fund for employees who do not choose their own super fund.
· As at 1 July 2014 (only a few short months away!) businesses with 20 or more employees will have to transact with their super fund electronically. Businesses with fewer than 20 employees will have until 1 July 2015.
These requirements are also mandated by legislation and a new penalty regime will apply for those who do not comply.
It’s certainly a long list, but help is out there. For assistance Rod Stewart can be contacted on 0428 558 158 or email email@example.com.
Prime Super (ABN 60 562 335 823) is a not-for-profit Industry Superannuation Fund. This article contains general information only and does not take account of your personal circumstances. Information in this article is current as at 28 February 2014 and subject to change. You should obtain personal advice where appropriate. Prime Super is issued by Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723). A Short-Form Product Disclosure Statement is available from the issuer by phoning 1800 675 839.