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Your Super Update July 2017

July 12th, 2017

Employers can rest assured there’s no need to update the rate of superannuation contributions this year. The Superannuation Guarantee (SG) remains at 9.5 per cent.

The SG rate will remain on hold until July 2021 when it rises to 10 per cent and then increases by 0.5 per cent each financial year until it reaches 12 per cent.

It’s important to meet your SG obligations or risk facing a Superannuation Guarantee Charge (SGC). The SGC is a tax with the amount determined by how late the payment is. This shortfall, plus an interest rate of 10 per cent and administration fee of $20 per worker per quarter is payable to the Australian Taxation Office. To find out more, use the ATO’s SGC statement and calculator tool.

Avoiding the SGC is easy if you meet cut-off dates for superannuation contributions. Quarterly payments are:

Quarter 1 period
July 1 – September 30
Payment cut-off date is October 28
Quarter 2 period
October 1 – December 31
Payment cut-off date is January 28
Quarter 3 period
January 1 – March 31
Payment cut-off date is April 28
Quarter 4 period
April 1 – June 30
Payment cut-off date is July 28

The SG applies to all employers, whether they operate a small, medium or large sized business. If you are unsure whether you need to make super contributions for people you employ, visit the ATO’s Superannuation Guarantee eligibility decision tool. After answering a series of questions, you will receive a report about whether you need to make super contributions and a summary of your super obligations.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fund (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as investment advice. Content was accurate at the date of issue, but may subsequently change. You should contact us on 1300 360 988 for updated information and to obtain a copy of the product Disclosure Statement.