Superannuation rate to increase to 9.5%

From 1 July 2014, superannuation guarantee paid by employers will increase from 9.25% to 9.5%. It is important to ensure your business payroll system is updated for this change.

Superannuation payments to be made electronically

SuperStream is a new standard that requires electronic reporting and payment of employee superannuation contributions. It is designed to be simpler and faster for employers, providing one standard format for reporting contributions to each employee’s super fund. All employers will need to change their current payroll practice to incorporate this new standard.

Employers with 20 or more employees will begin using the SuperStream standard from 1 July 2014, while employers with fewer than 20 employees will begin from 1 July 2015.

Increases to employee tax withholding

With the increase to the Medicare Levy from 1.5% to 2% and the proposed 2% Temporary Budget Repair Levy, it is important to ensure your payroll system is updated with the new tax tables from 1 July 2014.

Fringe benefits tax increase

Due to the increase in Medicare Levy, fringe benefits tax has also seen an increase of 0.5% to 47% from 1 April 2014. While this will not affect preparation of 2014 Payment Summaries for your employees, it is important to consider when assessing the cost of providing fringe benefits such as use of a vehicle or payment of expenses on behalf of yourself, your associates or employees.

Are you ready for these changes?  Please contact your Altitude Accountant and we will be happy to assist you in your preparations.