The Government’s superannuation system reforms MySuper and SuperStream have been the key legislative changes imposing requirements on employers.
Below is an overview of the key requirements and compliance dates.
MySuper introduced a set of product features that is standard across the industry. Product features include a single investment option and basic Death and Total & Permanent Disability insurance.
With the introduction of MySuper, employers must use a default fund that is registered by Australian Prudential Regulation Authority (APRA) to offer a MySuper product.
- MySuper was introduced on 1 July 2013, but superannuation funds had until 1 January 2014 to become a MySuper provider.
- For employees deemed to be 'MySuper' members in a fund, employers are required to make Superannuation Guarantee (SG) contributions into a Fund that provides a MySuper product.
SuperStream introduces new data standards that makes processing super payments easier. The new standards aim to reduce the time it takes to process rollovers and contributions, provide reliable electronic transacting and lower transaction costs over time.
With the introduction of the SuperStream standards, you’ll need to make super contributions electronically:
- By 1 July 2015, if you have 20 or more employees, or *
- By 1 July 2016, if you have 19 or fewer employees.
* The ATO has extended its compliance flexibility and will not be taking compliance action against employees who miss the 30 June deadline. However they expect that employees are putting plans in place now and come up to speed by 31 October 2015.
Other upcoming legislative changes
SG contributions set to increase over time
Between 1 July 2013 and 1 July 2025, employer SG contributions are set to increase each year from 9.25% to 12% of Ordinary Time Earnings. This increase will be gradual as shown in the table below:
|1 July 2013||9.25%|
|1 July 2014||9.50%|
|1 July 2015||9.50%|
|1 July 2016||9.50%|
|1 July 2017||9.50%|
|1 July 2018||9.50%|
|1 July 2019||9.50%|
|1 July 2020||9.50%|
|1 July 2021||10.00%|
|1 July 2022||10.50%|
|1 July 2023||11.00%|
|1 July 2024||11.50%|
|1 July 2025||12.00%|