Super Changes from 1 July 2013 …
You should be aware of some super changes coming into effect from 1 July 2013.
Super Guarantee For People Over 70 Years
Up until now, it has not been mandatory for employers to pay super guarantee for their eligible employees over the age of 70. From 1 July this is set to change. From that date, the maximum age limit will be removed and anyone meeting the super guarantee eligibility rules, will need to have super guarantee paid for them.
Increase in Super Guarantee Rate
From 1 July 2013, the compulsory super guarantee (SG) rate will increase from the current 9 per cent to 9.25 per cent. Over the next seven years, the rate is scheduled to increase to 12 per cent.
Employers will need to review their SG payments to ensure they are paying the correct rate for their employees.
Bear in mind too that this increase will have the effect of bringing people closer to their annual concessional contributions limit, especially those who salary sacrifice part of their pay to superannuation. A review of sacrifice arrangements may be required.
Increase in Concessional Contributions Limit
The standard concessional contributions limit for 2013/2014 is to remain at $25,000.
However, for people aged 59 or over as of 30 June 2013, the concessional limit was recently increased to $35,000 per financial year, effective from 2013/2014.
From the 2014/2015 year, individuals aged 50 years and over will be entitled to the higher $35,000 concessional contributions cap.
More information on all these changes may be found on the Australian Taxation Office’s website at www.ato.gov.au
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