Obligations

 

Helping you meet your super obligations

For employers, managing your super obligations can be hard work. Thankfully, at Maritime Super we make it as simple and straightforward as possible. Even better, as your industry super fund, we’ve tailored our approach to the unique needs of businesses in the maritime industry. Just call us on 1800 757 607, or alternatively call Mick, our Business Development Manager, on 0410 446 791.

 

As an employer you are required by law to make Superannuation Guarantee (SG) contributions of 9.5% on behalf of your employees who are:

  • Aged 18, or older, and receive a wage of $450 (before tax) or more a month
  • Under the age of 18 and work 30 hours or more a week and earn $450 (before tax) in a month
  • Employed on a full-time, part-time or casual basis.

Your SG contributions need to be paid to the relevant super fund by the set date each quarter. However, some workplace agreements may require you to pay monthly or more regularly.

The current minimum SG contribution is 9.5% of Ordinary Time Earnings. However, this rate will gradually increase over the coming years to 12% of Ordinary Time Earnings by 1 July 2025. The table below shows the required SG contribution for the coming financial years.

Financial year starting SG contribution rate
1 July 2017 to 1 July 2020 9.5%
1 July 2021 10%
1 July 2022 10.5%
1 July 2023 11%
1 July 2024 11.5%
1 July 2025 12%

Some employees are able to choose the superannuation fund that you pay their SG contributions into, under Choice of Fund. However, employees that fall under certain awards or industrial agreements may have their super fund specified and may not be eligible for Choice of Fund.

When you have an employee who is eligible for Choice of Fund, but they don’t nominate a fund, you need to select a MySuper default fund for SG contributions that offers a minimum level of insurance cover. Most industrial awards include a list of default funds that you can choose from.

You are required to provide new employees with a Standard Choice Form within 28 days of them starting employment. Once they have notified you of their choice of fund, you must act on it within two months.

There is no limit on the number of times an employee can ask you to change the fund into which their contributions are paid. However, you’re only required to act on the employee’s request once every 12 months.

You should keep records for at least five years of the following:

  • Employees who do not have to be offered a choice of super fund
  • Evidence the ‘Standard Choice Form’ has been given to all eligible employees
  • Confirmation that you’ve acted on your employees’ choice of super fund
  • Confirmation that the default fund chosen meets the minimum death insurance requirements set out in the legislation

Penalties apply if you don’t meet these obligations.

As an employer, you’re required to make Superannuation Guarantee (SG) contributions for eligible employees. Some awards or industrial agreements specify the super fund for SG contributions for particular employees. However, some employees can choose the superannuation fund into which their SG contributions are paid. For those employees who don’t choose a fund, you need to select a default fund for SG contributions that offers a minimum level of insurance cover to members.

Maritime Super is a MySuper authorised fund, so there’s also no issues in nominating us as the default fund.

MySuper was one of the key components in the Government’s 2011 superannuation system reforms. It was designed to introduce a set of standardised industry wide product features for eligible default funds, including a single investment option and basic Death and Total & Permanent Disability insurance.

Since 1 January 2014, employers have been required to make SG contributions into a fund that provides a MySuper product for employees deemed to be 'MySuper' members.

SuperStream was part of the Government's Stronger Super changes that were designed to enhance the 'back office' of superannuation and improve the efficiency of the superannuation system as a whole. For employers, it required significant changes to the way they provide their contribution data and make payments. For members, it is designed to reduce the time it takes to process rollovers and contributions and provide lower costs over time.

SuperStream officially started on 3 November 2014, however the ATO has allowed for a transitional timeframe for employers to make the necessary changes. However, all employers were required to have made the transition by 30 June 2016.

If you are not yet SuperStream compliant, or not sure if you are, call our Business Development Manager Mick Hegan on 0410 446 791. He will be able to help you determine if you are compliant and implement any necessary changes to ensure that you are moving forward.

All employers have a responsibility to record an employees’ Tax File Number (TFN) if provided. You must provide the employee's TFN to their super fund within 14 days of receiving the TFN.

It’s important you provide your employee’s TFN to their super fund so that they are not liable for additional tax, and they don’t miss out on any government benefits they may be entitled to, like the co-contribution.

For more information about Tax File Numbers visit www.ato.gov.au

For any employees taking advantage of government benefits like the co-contribution, family tax benefits and child care benefits, you need to report certain super payments known as RESCs you make on their behalf.

Generally, you need to list the following contributions on an employee’s PAYG Payment Summary as RESCs:

  • any employer salary sacrifice contributions or other before-tax contributions that an employee has the capacity to influence, paid into their super fund over the minimum SG contribution, and
  • any additional employer contributions that your employee has specifically negotiated with you.

Once the contributions are reported, the ATO and/or Centrelink will use these amounts to work out the various Government benefits your employees have applied for or are entitled to.

Visit ato.gov.au to learn about your superannuation obligations.

Need help or have questions?

We’re all about making it as easy as possible for you to manage your company superannuation. If you need help, give Mick Hegan our Business Development Manager a call on 0410 446 791.