Superannuation

From 1 July 2008, employers have used 'ordinary time earnings' (OTE) to work out thei remployees' minimum Superannuation Guarantee (SG) contributions.  Because of this law change and other big changes over the last 15 years, Superannuation Guarantee rulings SGR 94/1 (Earnings bases), SGR 94/4 (ordinary time earnings) and SGR 94/5 (Salary or Wages) are no longer current.

A new ruling about categorising different payments as 'ordinary time earnings' and 'salary or wages' will replace SGR 94/4 amd SGR 94/5.  This ruling is titled 'SGR 2009/2' - Superannuation gurantee: meaning of the terms 'ordinary time earnings' and 'salary and wages' and includes easy to follow examples.  The ruling was released on 6 May 2009, and will be effective from 1 July 2009.

Super News for Small Business

In July 2010 the Federal Government introduced an optional free service, for small businesses with fewer than 20 employees, to make it easier to meet superannuation guarantee obligations.

Administered by Medicare Australia, the Small Business Superannuation Clearing House offers significant benefits to small businesses by reducing the time and paperwork involved in paying contributions to numerous funds.

Employers only have to make one electronic payment to the clearing house.  On receipt of the electronic payment, the clearing house sends the contributions to the appropriate superannuation funds.  Once the payment has been accepted by Medicare Australia, the employer has met their superannuation guarantee obligations.

Once an employer is registered, it only takes a few minutes to use the service.  Each time an employer makes a contribution, their employees' details are pre-populated for them.  The employer only needs to enter the contribution amounts and an option is available to nominate a regular contribution amount.

Employers can access a record of their contribution history whenever they need it.

Register for the clearing house service online at medicareaustralia.gov.au/super or for more information call 1300 660 048 or email SBSCHenquiries@medicareaustralia.gov.au