Super Changes

Don’t Forget About Super

http://www.ato.gov.au/superfunds/content.aspxmenuid=0&doc=/content/00320488.htm&page=11&H11

Employers in the middle of, or about to embark on, enterprise bargaining, need to remember that superannuation is mandated to start increasing this year. The federal government in its submission to the Annual Wage Review panel of Fair Work has also reminded the Commission of that fact, in an implied nod to restraint in determining minimum wages for the next 12 months.

From July 1st this year, compulsory employer superannuation contributions rise to 9.25% and employers bargaining now need to also factor in, if they are looking at, say a three year deal, that by the end of that agreement’s term in 2016, superannuation will be 10.5% and rising through to 12% over the subsequent three years.

Unlike the days when award superannuation was introduced and productivity offsets were required, there is no provision in the superannuation legislation for there to be any trade-off for these increased wage costs. This means it is important employers remind their employees that there will be super increases each year over the next six years, and that needs to be taken into account during bargaining.

The link above is to the ATO’s website showing the increase instalments mandated by the legislation.