Current at: 30 July 2008
SUPERANNUATION CONTRIBUTIONS - Recent Changes
What Has Changed?
How you calculate your superannuation contributions for employees, directors and “labour only” or “substantially labour only” contractors
How Has It Changed?
Before
Superannuation Contributions were calculated as 9% of either:
-
Ordinary Time Earnings ("OTE"); or
-
The amount required under an award, employment agreement, superannuation fund trust deed or another law.
Now (since
1 July 2008
)
You can only calculate those superannuation contributions you are required to make for employees (which include directors and “labour only” or “substantially labour only” contractors) using OTE.
For an explanation on what “OTE” is, click here.
How Do I Know If My Business Will Be Affected?
Chances are that, if you pay your employees under an industrial award, you already calculate your superannuation contributions using OTE. For example, the following awards already require you to calculate your superannuation contributions this way:
-
National Building & Construction Industry Award
-
National Joinery & Building Trades Product Award
-
Most State Building Awards
However, if you want to make sure, do the calculation, using OTE, to see whether the amount is different from what you have been paying as superannuation contributions in recent months. If they are different, you should change the way you calculate your superannuation contributions from now on, and, if necessary, make sure you pay the difference into your employee’s superannuation fund as soon as possible, so you avoid having to pay a tax on the shortfall.
For more information, call the HIA Memberline on 1300 650 620.