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Thursday, 23 January 2014

New Superannuation Requirements From 1 January 2014

All employers became subject to new employee superannuation requirements from 1 January 2014 as a result of the start of the Government's MySuper requirements.

From 1 January 2014 all employers are required to make their employer Superannuation Guarantee contributions on behalf of employees who have not nominated a fund to an authorised 'MySuper' fund.

The obligation applies only in relation to employees who have not selected a preferred fund (by completing a 'choice of fund' form).

MySuper is a new superannuation product that replaces previous default superannuation products. MySuper products have a simple set of features, regardless of who provides them. They are designed to ensure members do not pay for any unnecessary features they do not use.

Default super products are used when employees haven't chosen a super fund.

The Australian Tax Office (ATO) recommends employers check that their current default fund offers a MySuper product. A list of authorised MySuper funds is also available on the Australian Prudential Regulation Authority website (see link below).

The ATO also advises that if an employer's existing default fund does not offer a MySuper product by 1 January 2014, they will need to switch to a fund that is authorised. Employers will need to provide an updated choice of fund form to employees that have not nominated a chosen fund within 28 days of this change.

Click below to view source Reminder to employers about new super obligations
APRA: List of MySuper authorised funds
ATO: MySuper