EMPLOYER
OBLIGATIONS
Stronger Super:
what does it mean for you?
This information sheet summarises super reforms impacting employers.
Contact your Business Development Manager if you have any further
queries on these changes.
Superannuation Guarantee (SG)
12% Superannuation Guarantee from July 2025
The SG currently requires all Australian employers to use Ordinary Time Earnings
(OTE) to calculate and pay 9.50% of each employee’s earnings to their super. If
your employees are covered by an award or agreement that specifies a higher
superannuation contribution, you must pay the higher amount. Otherwise, you
will be in breach of the award or agreement.
The minimum obligation required by employers will increase to 12% from July
2025-26, through annual incremental increases from July 2021 to July 2025
(see table at right).
Commencement
Superannuation
Guarantee
(% of OTE)
1 July 2014
9.5%
1 July 2021
10.0%
1 July 2022
10.5%
1 July 2023
11.0%
1 July 2024
11.5%
1 July 2025
12.0%
You will need to ensure that your payroll arrangements are flexible
to cater for the gradual changes to the minimum SG percentage base.
Employers who fail to make SG contributions on behalf of eligible
employees or fail to calculate the correct amount of SG are liable to
pay the SG charge.
MySuper
To make it easier for a member to compare
superannuation products from different funds,
the Government introduced the MySuper product
– a simple, low cost, superannuation product with
a single, diversified investment strategy.
Employers are required to ensure that their default super fund offers a
MySuper product.
Media Super’s Balanced option for super accounts has been authorised
as a MySuper product (identifier 42574421650098).
o make Media Super your
T
default fund, please visit our
website, call our Helpline or
arrange an appointment
with your Business
Development Manager for
assistance.
> EMPLOYER OBLIGATIONS
2
SuperStream
The SuperStream reforms are designed to enhance
the ‘back office’ of superannuation by standardising
how data is communicated for superannuation
transactions.
Key reforms in the package are designed to:
>allow the use of TFNs as primary account identifier
>encourage the use of technology to improve processing efficiency
>improve the way fund-to-fund rollovers are processed and the way
contributions are made.
Over time, these reforms will allow for more automated processing of
contributions. This automation should result in contributions being allocated
to members’ accounts faster and more accurately and should reduce the
costs for processing contributions across the superannuation system.
Use of Tax File Number (TFN) as primary account
identifier
Use of this unique identifier is designed to reduce confusion around alternate
addresses, misspelled, common or changed names, and similar names that
may share a birthdate. This will allow funds to identify and merge duplicate
accounts, reducing costs to the member and simplifying the administration of
their accounts.
Superannuation contributions are
subject to tax. Higher taxes apply
where a member has not supplied
their TFN to their superannuation
fund. They will also be unable to
make any non-concessional super
contributions to their account and
will be automatically ineligible for
the Government Low Income Super
Contribution.
You must supply each new staff
member’s TFN to us with your
next contribution, or within 14
days from the date you receive
it if there are less than 14 days
between when you receive a TFN
from an employee and the date
you make the contribution on their
behalf. Failure to meet your TFN
responsibilities is a serious
offence and attracts penalties.
Funds can also use TFNs to search the ATO’s superannuation registers or seek
account information from another fund or retirement savings account
provider, provided the member consents to the use of their TFN for this
purpose.
Stronger super timeline
This timeline outlines key action dates.
DATA STANDARDS / eCOMMERCE
DATA STANDARDS / eCOMMERCE
Mandatory for large employers (20 or more
staff). Transition period ends 31 October
2015 – employers will not be able to provide
contributions via cheque or paper remittances.
Mandatory for small employers (fewer than
20 staff). Transition period ends 28 October
2016 – employers will not be able to provide
contributions via cheque or paper remittances.
30/6/2014
31/10/2015
28/10/2016
> EMPLOYER OBLIGATIONS
3
Mandatory data standards
New information requirements are to be introduced to reduce the number of lost
superannuation accounts due to inadequate or incorrect information.
As of 1 July 2014, employers are required to make reasonable efforts to obtain an
employee’s full name, date of birth, sex, tax file number and residential address
and provide this information to the fund before or on the same date as the first
contribution for that employee.
You will need to ensure that your
employee superannuation
onboarding arrangements comply
with the new requirements.
The information is to be validated by the super fund within a specified time-frame
and any queries raised with the employer. An employer response is then to be
provided within 10 working days of receiving a query.
Use of eCommerce
As of 1 July 2014, new data standards apply to super transactions, including
employer SG contributions. The new standards will make processing super
payments easier and result in fewer data quality issues leading to faster and
more accurate processing of contributions and member accounts.
As part of the reforms, employers will be required to send contribution data and
certain prescribed member personal details in a standard electronic format. After
the dates below, the new data standards will apply and funds will no longer allow
cheque contributions or paper remittances:
>31 October 2015 for employers with 20 or more employees
>28 October 2016 for employers with fewer than 20 employees.
The ATO has allowed a transitional period of 12 months from the aforementioned
dates, providing employers are making a genuine attempt to implement the
standard.
If you are currently using cheques
and paper remittances and you’d
like assistance with transitioning to
one of our online solutions, please
arrange an appointment with your
Business Development Manager.
Businesses who process their
super contributions through a
payroll provider may need to
upgrade their software or systems
to new versions which incorporate
the new data standards.
If you are using EmployerOnline or our Clearinghouse MercerSpectrum for your
super administration, you have already satisfied the requirement to comply with
the electronic standards.
Every effort has been taken to ensure that the information provided is accurate at the date of issue (June 2016).
Proposed or draft legislation and indicative timings not yet confirmed as law are subject to change.
Super Helpline
1800 640 886
mediasuper.com.au
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This fact sheet contains general information and does not take into consideration your personal objectives, situation or needs. Media Super’s
Business Development Managers provide general advice only and before engaging a Business Development Manager you should read the Financial
Services Guide (FSG) that can be found at mediasuper.com.au and provides important information as to the financial services offered. Before making
any financial decisions you should first determine whether the information is appropriate for you by reading the Product Disclosure Statement and/or
by consulting a qualified financial planner. Issued June 2016 by Media Super Limited (ABN 30 059 502 948, AFSL 230254) as Trustee of Media Super
(ABN 42 574 421 650, USI Superannuation 42574421650001). MSUP 50050