Australia: Super changes for employers

On 14 September 2017, the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 2) Bill 2017 (Cth) was introduced in the House of Representatives. The Bill contains two amendments which will significantly impact employers:

  1. amendments regarding choice of superannuation funds for employees under workplace determinations or enterprise agreements; and
  2. amendments regarding employee salary sacrifices to superannuation.

The provisions of the Bill were referred to the Senate Economic Legislation Committee for reporting by 23 October 2017.

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Australia: ATO to ‘crack down’ on employers not paying the correct super

The Government has announced a further package of superannuation reforms to address concerns that employers may not be complying with their superannuation guarantee (SG) obligations.

The proposed reforms:

  • suggest that the ATO will be granted additional powers to ensure that employers are contributing the correct amount of superannuation contributions for eligible employees; and
  • impose additional reporting obligations on trustees of superannuation funds and employers. Continue reading

Australia: Have you updated your salary sacrifice policy?

Employers may need to review their salary sacrifice policies as from 1 July 2017 due to changes to the superannuation rules. The most significant change is that, from 1 July 2017, employees will be able to make personal superannuation contributions and claim a tax deduction, rather than needing to salary sacrifice take home pay into superannuation.

We explain below:

  • the current position on salary sacrificed contributions;
  • the new position as of 1 July 2017; and
  • what action employers can take as a result of these changes.

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