Australasian Dental Practice

Tuesday, 23 July, 2024

31 Jul 2013 | Australasian Dental Practice

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Be aware of your super obligations

Superannuation

Employers in the dental community need to ensure they are aware of their new super obligations and consider making any necessary changes now to ensure they are ready, according to the Australian Taxation Office.


The superannuation data and e-commerce standard is being introduced to make it possible for employers to send contributions to all funds in one standard electronic format.

Medium and large practices

Alison Lendon, Deputy Commissioner, Superannuation, said dental practices that employ 20 or more people need to act most swiftly, with the introduction of the data and e-commerce standard (the Standard) on 1 July, 2014.

"The time to prepare for the Standard is now," Ms Lendon said. "If you think your business will need to update software or systems, you should start planning now to ensure you're ready on time.

"If you prefer to process your employer compulsory super contributions yourself, you can work with your default super fund or payroll supplier to meet the new data and e-commerce standard. Other partners, including accountants and clearing houses, will be able to help as well."

The standard is part of the Government's SuperStream measures to ensure all movements of money within the super system are transferred electronically. Once implemented, the standard will provide a consistent and reliable method for processing superannuation payments electronically.

Small practices

Employers with 19 or less employees must comply with the standard by 1 July 2015.

"Small businesses have more time to prepare," Ms Lendon said. "However, it's important to be aware of what's coming up and know what changes you will have to eventually make."

Clearing House

One option to help employers with 19 or fewer employees to comply is to take advantage of the Small Business Superannuation Clearing House.

"The clearing house is a free service that lets you pay your superannuation contributions in one transaction to a single location. The service will help remove the burden of administration and help you to meet your obligations. You simply register your employees' superannuation fund details and the contributions will be distributed to their various superannuation funds."

All employers

The following reforms are already in effect, from 1 July this year:

  • An increase in the compulsory super payments (Super Guarantee) employers make on behalf of their eligible employees from nine per cent to 9.25%; and
  • The existing age limit for super guarantee (SG) eligibility was removed, meaning employers must now make SG payments for employees aged 70 and over.

MySuper

MySuper is a new, simple and cost-effective superannuation product that will replace existing default super fund products. Ms Lendon said employers must make super guarantee payments for employees who have not selected a preferred fund, to a fund that offers a MySuper product, by 1 January 2014.

"For most employers, it is expected that their existing default fund will offer a MySuper product," Ms Lendon said. "These employers will not have to make any change to the payment of superannuation guarantee contributions. Your fund should contact you to advise that they will offer MySuper product and any changes to the entitlements of your employees.

If you are unsure, or want more information on the MySuper product offered by your default fund, you should contact the fund."

Funds were allowed to start offering MySuper products from 1 July 2013.

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