Supersized Super

Look what I got in the mail from the ATO this morning:

At first I thought it was a calendar and started putting it together but then I realised that it was actually just a letter from the ATO packaged up in a triangle shaped desk clutterer.Had I not been intrigued by the fact I had to put the letter together (and thinking I was getting a calendar) I may have discarded this document – very clever ATO, very clever!  It was timely though as I have been meaning to blog about the changes to super that begin in 8 weeks time.  If you are an employer or an employee – this effects you.

From 1st July 2013 all employees will receive an increase to the compulsory superannuation contribution from 9% to 9.25%.  For employees, this is a great benefit.  Regardless of the fact that the money is going into super for your future retirement, it’s still money that you are being paid.  For employers, this is an additional contribution required by law and it’s really important to make sure your payroll and accounting systems are updated prior to your first payroll in July.

Numbers wise – if Bill earns $55,000 from his employer he is currently on a salary package of $59,950.  From July 1st 2013, he will receive a salary package of $60,087.50.  Some may say this is only $137.50 extra but in reality, that’s $137.50 he didn’t have before and a pay rise.

The .25% increase is the first of several increases over the next 7 years as by July 2019, the compulsory superannuation rate will be 12%.  I will keep you updated of the 8 different dates that the ATO have set to implement the various increases here on the blog.