The Tax Office has announced that it will be sending out information to employers with superannuation obligations in April 2013 to assist them in preparing for a range of reforms being implemented from 2013 to 2019. The two major changes that take effect from July 1, 2013 in the reform, are:
- An increase in the minimum rate for superannuation guarantee payments on behalf of employees from 9% to 9.25% for the 2013/14 financial year; and
- The age limit on superannuation guarantee will be abolished, which effectively means that eligible employees aged 70 and above will receive superannuation contributions from their employers.
Currently, employers can stop contributing the compulsory superannuation contributions when employees turn 70. The complete abolition of the upper age limit is estimated to benefit over 50,000 employees aged above 70 in the Australian workforce.
To find out more information on the impact these changes mean for your business, click here.