URGENT needs action now:
Super Contributions for the year ended 30 June 2021
For Super contributions to be deductible in this financial year, they will need to be received by your, or your employees, super fund by 30 June 2021.
If you use a clearing house to distribute super contributions, you will need to allow extra time for the payment to be processed. Super contributions are considered ‘paid’ on the date they are received by the super fund, not the date they are received by the clearing house.
We recommend that employers using a clearing house allow 10 days before the end of the financial year – so payment of contributions should be made as soon as possible.
Super Guarantee rate rising from 9.5% to 10% on 1 July 2021
For salary and wage payments made on or after 1 July 2021, the superannuation guarantee contribution rate of 10% will need to be applied. Further rate increases are planned in the coming financial years – see this link from the ATO.
Actions for your business:
- Check that your payroll and accounting systems are updated to incorporate the super rate increase
- Understand the impact that the rise will have on your employees. The impact may differ depending on their employment arrangements – in particular employees with a total remuneration package which includes superannuation
- Ensure that you are aware of additional superannuation related increases, including concessional and non-concessional contribution caps, as discussed here.
Single Touch Payroll is mandatory for ALL employers from 1 July 2021
Since the commencement of STP on 1 July 2018, The ATO has provided several concessions depending on business, industry, or employer types. Most of these end on 1 July 2021.
If you have a current concession you will need to be reporting each pay day through STP by this date.
If you haven’t started reporting through STP, you need to start reporting as soon as possible as penalties may apply.
See this link for further details.
As always, if we can be of assistance please call us on 3217 5700 or email [email protected]
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