Andrew Lovett explains the latest news on superannuation in plain English. Directors will be personally liable for unpaid super guarantee contributions, super guarantee will move to 12% by 2019, super contributions to be printed on payslips.

1. Superannuation
Updates from 2011
www.lovetts.com.au

2. Disclaimer
The information contained in this presentation is for guidance only and
should not be relied upon without obtaining professional advice having
regard to your direct circumstances. No responsibility for loss occasioned
directly or indirectly to any person acting or refraining from acting wholly or
partially upon or as a result of the material in this presentation or for any
error in or omission from this presentation can be accepted by the publisher
or any author, editor, contributor or consultant of any company referred to
herein.

3. Super topics
• Directors to become personally liable for unpaid super guarantee
contributions
• Super guarantee to move from 9% to 12% by 2019
• Super contributions on payslips from July 2012

4. Directors liable for unpaid super
• Director penalty regime applies to
PAYG withholding that is not paid making
director liable
• Bills before parliament to extend
director penalty regime to unpaid super
• Tax Office can estimate unpaid super to assess director obligation
• Treated as assessed on date super guarantee shortfall statement is
due
• Directors will pay Government – employee must claim from them

5. Super guarantee to move to 12%
• Current rate is 9%
• 0.25% increments in July 2013 and 14
• 0.5% increments each year then thru’ 2019
• 30 year old will have additional $108k for retirement
• Additional $10b in super funds by 2020 and additional $35b in super
by 2035
• Not yet legislated but coalition supports subject to finding savings to
fund tax difference

6. Super contributions on payslips
• Announced in last two budgets
• Information on payslips about super actually paid
• Employees also to receive quarterly notification from super funds
• Not yet passed by parliament
• Takes effect from July 2012

7. Recommendations
Superannuation
• Along with PAYG withholding ensure priority super
paid
• Plan for increasing super costs in projections
through to 2019 to 12%
• Plan for reporting super on pay slips next financial
year

8. SAVE TAX, GROW BUSINESS, GENERATE
CASH FLOW, PLAN SUCCESSION & PROTECT
ASSETS
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