16. but who is paying
for these
increases?
You?
You?
17. but who is paying
for these
increases?
You?
You?
Well, that
depends on 2
things:
18. but who is paying
for these
increases?
Well, that
depends on 2
things:
01
Remuneration
Structure
You?
19. but who is paying
for these
increases?
Well, that
depends on 2
things:
01
Remuneration
Structure
02
What do you
want to do?
20. There are 2 types of remuneration structures:
01
Remuneration
Structure
# 1
Base plus
Superannuation
($60K + super)
# 2
Salary Package
($65.4k incl. super)
21. If you use base + super
you must increase
remuneration
01
Remuneration
Structure
# 1
Base plus
Superannuation
($60K + super)
# 2
Salary Package
($65.4k incl. super)
Company must
increase remuneration
22. If you use salary
package, you may not
need to.
01
Remuneration
Structure
# 1
Base plus
Superannuation
($60K + super)
# 2
Salary Package
($65.4k incl. super)
Company must
increase remuneration
Company may not be
required to increase
23. If you use salary package you
must review:
# 2
Salary Package
($65.4k incl. super)
Company may not be
required to increase
Employment contract
Modern Award
What does your
contract say about
super contributions?
What are your Modern
Award obligations?
24. 02
What do you
want to do?
If you are not required to
increase the remuneration
package – your employees will
cover the increase from their
take home pay.
25. 02
What do you
want to do?
If you are not required to
increase the remuneration
package – your employees will
cover the increase from their
take home pay.
!Super is REAL money.
Do not feel obliged to increase
remuneration packages if you
do not have to.
26. Don’t forget about bonus, commission
and other payments to which the
superannuation guarantee applies.
27. To make your plan, identify:
What do you have to do?
What do you want to do?
Why do you want to?
What impact will that have on the business?
(to meet your legal obligations)
(increase remuneration even if you don’t have to?)
(is it to be nice or an active engagement strategy?)
(consider implications now and in the future on, salary costs, employee
engagement and return on investment for example)
30. Upper Age limit will be removed
Super contributions required for all employees
Current
Over 70
From 1 July 13
Over 70
31. Change #3
Super is getting SIMPLER
MySuper
New Super product
replacing default products
Data Standard
Send contributions in 1
standard electronic format
32. MySuper
From 1 January 2014 all ‘default super’
funds must offer a MySuper product.
It is expected that existing default funds will
offer a MySuper product.
You default fund should contact you with
transition details.
33. MySuper
From 1 January 2014 all ‘default super’
funds must offer a MySuper product.
It is expected that existing default funds will
offer a MySuper product.
Your default fund should contact you with
transition details.
If they don’t contact you by October 2013
– contact them and ask
Do you offer a MySuper product?
34. Data Standard - SuperStream
From 1 July 2014 you must use the new data and e-commerce
standard (1 July 2015 for employers with < 19 employees).
For more information about the data standards:
35. Now you have a better
understanding of the changes
What will
you do
about it?
36. 1 JULY 13 - TO DO CHECKLIST
Identify any employees > 70 years
Review Remuneration Structure (all employees)
Review Employment Contract
Review Modern Award Obligations
Identify what you have to do
Decide what you want to do
Document what you will do
Notify your employees
Issue employment condition variation letters (where required)
37. TIMETABLE OF CHANGES
1 Jul 13 Increase SG rate from 9% to 9.25%
Make SG contributions to employees > 70
1 Jan 13 Default fund must offer a MySuper product
1 Jul 14 Increase SG rate from 9.25% to 9.50%
Use new data and e-commerce standard (employers > 20 employees)
1 Jul 15 Increase SG rate from 9.50% to 10%
Use new data and e-commerce standard (employers < 19 employees)
1 Jul 16 Increase SG rate from 10% to 10.5%
1 Jul 17 Increase SG rate from 10.5% to 11%
1 Jul 18 Increase SG rate from 11% to 11.5%
1 Jul 19 Increase SG rate from 11.5% to 12%
38. FURTHER INFORMATION
ATO Employers
Superannuation
DHS Small Business
Superannuation
Clearing House
This presentation has been provided as
general summary of the changes occurring
to Superannuation.
You should seek professional advice when
designing a system to address the changes
to superannuation.
ATO Super Eligibility Tool
39. Kinetic Recruitment specialises in permanent and contract recruitment to
Defence, Rail and Resources organisations in Australia.
Amelia De Angelis is the Operations Manager for Kinetic Recruitment and
manages the Human Resources department . She holds a Bachelor of Business
Studies and is passionate about sharing knowledge with our clients.
For further information please contact us at enquiries@kineticrecruitment.com.au
www.kineticrecruitment.com.au
