EmployerUpdate. Want to win. What s inside. Welcome to the June edition of the Employer Update.

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1 EmployerUpdate June 2013 What s inside Welcome to the June edition of the Employer Update. > Do the super reforms impact employers? > About MySuper > What s up with SuperStream? > Snapshot of key SuperStream dates to remember > We re here to make it easy - your payment options > Meet the Employer Services team > Stronger Super checklist > Information sessions for Stronger Super You may already be aware of the changes happening in super. But if you re not don t worry as here at StatewideSuper we see it as our job to make super easier for you that includes changes that are coming for employers as a result of the Stronger Super reforms. This means you can concentrate on what you do best running your business. In this edition of Employer Update, you ll find an overview of the Stronger Super reforms, including the ways we can assist you to meet your super obligations now and in the future! Want to win tickets for two to see Ricky Martin at the Adelaide Entertainment Centre? For more details see inside!

2 Do the super reforms impact employers? Yes! The Federal Government will be making a number of changes to super over the next seven years. These changes will aim to help protect and grow the retirement savings of all Australians. What you need to be aware of is the changes that impact you as the employer. So take some time to read the information in this newsletter you might even win tickets to see Ricky Martin just make sure you enter our competition! A closer look at the Stronger Super reforms As you ve read above, the Federal Government is introducing a number of changes to super these are commonly referred to as the Stronger Super reforms. The aim of the reforms is to improve the super system by: Creating a simple, cost effective default super product called MySuper Making the process of everyday transacting easier, cheaper and faster, through the SuperStream measures, and Strengthening the governance, integrity and regulatory settings of the super system. OK, so exactly what does this mean for you? As an employer, in the future, you ll be required to: Gradually increase the minimum employer Superannuation Guarantee (SG) rate for your employees from the current 9% to 9.25% in rising to 12% by 1 July 2019 Make SG payments for eligible employees aged 70 years or over Follow a new data e-commerce standard when making super contributions on behalf of your employees. The implementation date for this depends on the number of employees you have. If you employ: 20 or more staff the new data e-commence standard will apply from 1 July 2014 Less than 20 staff the new standard will apply from 1 July From 1 January 2014, employers must pay super contributions to a complying MySuper product for any employee who hasn t made a choice. And because we like to make it super easy for you StatewideSuper s already a MySuper-approved super fund! Increases to the Superannuation Guarantee Now this is really important! From 1 July 2013, the minimum employer SG contribution will be increasing from 9% to 9.25%. You should also start planning now to increase the amount paid to meet the SG increase over the next seven years, to 12% from 1 July 2019, which is reflected in the current legislation passed earlier this year. See the table below for how the SG will increase over time: Year Rate Current rate 9.00% 1 July % 1 July % 1 July % 1 July % 1 July % 1 July % 1 July 2019 and onwards 12.00% What you ll need to do You ll need to remember to update your payroll and accounting systems to apply the SG increases the first increase from 1 July 2013 will be from 9% to 9.25%. Don t worry we ll continue to make it easy by giving you plenty of reminders! Super Tip: To work out how much super you need to pay for each employee, use the Australian Taxation Office s (ATO) superannuation guarantee contribution calculator. Removal of Superannuation Guarantee upper age limit From 1 July 2013, there will no longer be an upper age limit for making the minimum employer SG contributions for employees. Currently, employers are only required to make super contributions for employees less than 70 years of age. The removal of this age limit aims to encourage mature workers to stay in the workforce. This means you may need to make SG payments for eligible employees aged 70 years or over. What you ll need to do Do you have any employees aged 70 years or over who may be eligible to have super payments made to a fund by you? If no, there s nothing you need to do, unless you employ new staff aged 70 or over after 1 July If yes, you do have eligible employees aged 70 or over, then you ll need to arrange to pay SG contributions of 9.25% to your default fund, or the employee s fund of choice, from 1 July Tip: For help working out if an employee is eligible for compulsory super payments, refer to the ATO s superannuation guarantee eligibility decision tool, or give us a call on We ll be happy to help. Page 2 StatewideSuper Employer Update

3 EmployerUpdate About MySuper MySuper is a new, simple and cost effective super product that will replace existing default super products. And just because we like to make life easy for you, StatewideSuper already has been made a MySuper-approved super fund! So what does MySuper mean for employers? As you know, all employers have a nominated super fund, or default fund, where they automatically pay an employee s SG contributions if the employee doesn t make an active choice about which super fund they want their SG to go to. If an employee has made an active choice, they will have completed an ATO Standard choice form. As an employer, what you ll need to do from 1 January 2014 will depend on whether the employee uses your nominated super fund or makes an active choice about their super provider. What you ll need to do from 1 January 2014 You ll continue to pay the SG as you currently are to the nominated funds of new and existing employees who have made an active choice of fund. Did you know there may be changes to Payslip reporting? The Government has not yet issued what the reporting requirements will be. Don t worry as we learn more we ll let you know. Super Tip: Need help with any of the Stronger Super changes? Then have a chat with one of our Employer Services Consultants or a local Client Relationship Manager by calling For any new and existing employees who have not made a choice of fund election, you must pay their SG contributions into a MySuper approved fund like StatewideSuper. What s up with SuperStream? Are you asking yourself what SuperStream is? Well, it s a package of proposals that aims to improve the processing of everyday super transactions. It includes measures to: Implement new data and e-commerce standards for super transactions, including for employers making SG payments Allow the use of tax file numbers (TFNs) as the primary locator of members accounts Improve account consolidation processes and administration when contributions are made to a super fund without sufficient member details. About the new data and e-commerce standards for employers All employers will need to transition to the new data and e-commerce standards. The new standards mean that you ll be required to submit information to your super fund electronically in an approved format. This will be phased in during 2014 and don t worry we ll keep you posted! As well as submitting information in an approved format, you ll be required to make contributions electronically via approved clearing houses or third party companies that receive and process super payments. Page 3

4 Snapshot of key SuperStream dates to remember 1 July 2013 Super funds can opt in to begin using the new data standards for processing rollovers 1 January 2014 Super funds must process all rollovers electronically using the new data standards Employers can opt in and begin using the new data standards for contributions 1 July 2014 Employers with 20 or more employees must use the new data standards when sending contributions to super funds All super funds must be able to receive contributions under the new standard 1 July 2015 Employers with less than 20 employees must use the new standard when sending contributions to super funds The dates above are important, as the ATO may issue a penalty for non-compliance to those employers who don t use the new data standards and process their transactions electronically by the required date. What you ll need to do In the coming years, you ll no longer be required to provide contribution information to separate funds in different formats. For employers, the new standard will make processing SG payments easier and will result in: fewer data quality issues simpler, more consistent contribution processes fewer lost accounts and unclaimed monies faster processing of employees money into their super accounts lower overall processing costs. Remember! If you re an employer with 20 or more employees you must use the data and e-commerce standard from 1 July You do have the option to start implementing the new data and e-commerce standard before 1 July 2014 if you wish. If you re an employer with less than 20 employees you must start using the data and e-commerce standard from 1 July You do have the option to start implementing the new data and e-commerce standard before 1 July 2015, if you wish. Super Tip: Need help with implementing any of the SuperStream changes? Then have a chat with one of our Employer Services Consultants or a Client Relationship Manager by calling We re here to make it easy your payment options! We understand that as an employer, you need a way to make payments and access your super information that s fast, secure and easy and most of all convenient for you. That s why, if you re a participating StatewideSuper employer, you can get a head start by submitting contributions electronically now. That way you ll already be meeting the StrongerSuper data and e-commerce requirements. How good is that! It s easy to pay your contributions electronically. Your options are via: Statewide.On.Line This internet-based option that lets you submit contribution details securely online. This option is perfect for small to medium businesses. If you would like more information, call our Employer Services team on , or speak to a Client Relationship Manager. Super Tip: Need help with any of the Stronger Super changes? Then have a chat with one of our Employer Services Consultants or a Client Relationship Manager by calling Clearing house facilities The StatewideSuper clearing house will streamline your employee super contribution payments easing the burden of paying many different super funds. Our Clearing House allows you to make payments to multiple super funds (these can be any complying super fund outside StatewideSuper or within) in one easy step saving you both time and money. Payments are made electronically and automatically deducted from your bank account via a secure direct debit. The contribution information and payments are then sent to the various super funds chosen by your employees For more information about our Clearing House call our Employer Services team on , or speak to a Client Relationship Manager. StatewideSuper Employer Update Page 4

5 Information sessions for Stronger Super! We know there s a lot to take in with the Stronger Super reforms. That s why, in the coming months, we ll be conducting a series of one-hour workshops that will aim to make the coming changes, resulting from the Federal Government s Stronger Super reforms, easier for you! Want to book in for one of the first sessions? It s as simple as going to and registering online. The dates for the sessions are: Tuesday 23 July - 12pm 1pm or Wednesday 24 July - 12pm 1pm Don t worry if you miss out on these sessions, there will be more information to come, and more information sessions will be available in the coming months! And stay tuned as our Stronger Super for Employers Vodcasts will be available soon! Want to win tickets for two to see Ricky Martin at the Adelaide Entertainment Centre? For your chance to win two tickets to see Ricky Martin, simply the answers to the questions below to marketing@statewidesuper.com.au and you ll be placed in the draw. Answer these questions for your chance to win! 1. Under the StrongerSuper reforms, employers with less than 20 employees will need to use the new standard by when? 2. From 1 July 2013, what is the new SG percentage? The winner will be drawn at random from all employer entries received by 5.00pm, 12 July The closing date for the competition is 12 July The trade promotion is held by Statewide Financial Management Services Limited, ABN , GPO Box 1473 Adelaide SA For terms and conditions please refer to our website Page 5 StatewideSuper Employer Update

6 Meet the Employer Services team StatewideSuper has a dedicated team looking after the needs of our employers and their job is to make it super easy for you! They ll be more than happy to answer any questions you may have in relation to the StrongerSuper reforms, or ways to make it easier for you to meet your super obligations on behalf of your employees. Meet our Client Relationship Managers! This team of super experts will help make it easy for you to manage your super obligations. You can contact them by calling Robyn Rushton Robert Herz Henri Nguyen Stronger Super checklist To make it easy, here s a checklist of the key dates that impact employers. The table below shows Stronger Super changes, including the SG increases over the next seven years, to 12% from 1 July 2019, which is reflected in the current legislation passed earlier this year. Applies to employers with: From Task 20 or more employees 19 or less employees 1 July 2013 Increase SG rate from 9% to 9.25% Yes Yes Make SG contributions for employees aged 70 years or over Yes Yes 1 January 2014 Make SG contributions for employees who have not selected a preferred fund (by completing a choice of fund form) to a fund that offers a MySuper product. 1 July 2014 Increase SG rate from 9.25% to 9.5% Yes Yes If you re a medium to large employer (with 20 or more employees), you ll need to use the new data and e-commerce standard when making super contributions. Yes Yes Yes - 1 July 2015 Increase SG rate from 9.5% to 10% Yes Yes If you re a small employer (with 19 or less employees), use the new data and e-commerce standard when making super contributions (subject to further consultation). Super Tip: StatewideSuper can help you with our Clearing House facility. - Yes 1 July 2016 SG rate increases from 10% to 10.5% Yes Yes 1 July 2017 SG rate increases from 10.5% to 11% Yes Yes 1 July 2018 SG rate increases from 11% to 11.5% Yes Yes 1 July 2019 SG rate increases from 11.5% to 12% Yes Yes Statewide Superannuation Pty Ltd ABN AFSL trustee and RSE Licensee of Statewide Superannuation Trust ABN The trade promotion is being held by Statewide Financial Management Services Limited, ABN , GPO Box 1473 Adelaide SA The information provided is of a general nature. It does not consider your specific needs nor is it intended to be financial product advice. You should obtain independent financial advice and consider the applicable Product Disclosure Statement before making an investment decision. EMP Victoria Square Adelaide SA 5000 T F (08) information@statewidesuper.com.au