However, the complex and time-intensive process of claiming credits can be a burden on in-house resources and often results in under-claimed entitlements.
The minimum contribution rate will remain at 9.5% until 30 June 2021. After that date, the rate will increase by 0.5% each financial year until it reaches 12% from 1 July 2025.
Employers are generally required to pay superannuation contributions for employees if they are:
- Over the age of 18 (no upper age limit applies)
- Paid $450 or more (before tax) in a calendar month.
The Australian Taxation Office (ATO) provides the following tools to help you understand and meet your obligations:
- Superannuation Guarantee Charge (SGC) statement and calculator – calculate the SGC liability and prepare the SGC statement.
- Employee/contractor decision tool – determine whether new or existing workers are contractors or employees (for tax and super purposes)
- Superannuation guarantee eligibility decision tool – see whether an employer needs to make super contributions for employees
- Superannuation guarantee contributions calculator – calculate how much super an employee should be contributing for eligible workers.
Although data-matching is the ATO’s biggest tool for triggering a review or audit, they can also be completely random. Your industry may just be on the ATO’s hit-list for that period. Whatever the case, it is important to remain proactive in managing the risk of an audit.
We provide the following services if you do get audited:
- Communication with the ATO
- Review of the accounts and ensure that they are low risk before ATO starts their review
- Attending meeting with the ATO staff on behalf of our clients when required