Legislative updates and news for employers

As an employer, it can be challenging to keep up with all the news and legislative changes that may impact your business and your employees. These super legislation updates are designed to help you stay in touch with recent changes in legislation.

Below you’ll find an overview of recent legislative changes for the start of the year plus general news for employers including information about AustralianSuper’s response to COVID-19 and how our investment team is working to reduce the impact on members’ retirement savings.

 

Managing COVID-19

Supporting Australia’s employers

COVID-19 has probably led to many changes in the way you run your business and manage your team.

AustralianSuper's COVID-19 employer webpage has information on changes to laws and information about government assistance packages and business-related resources.

READ MORE: SUPPORT FOR BUSINESS – COVID-19

 

JobKeeper Payment and SG contributions

As a wage subsidy program, the Federal Government’s JobKeeper Payment is helping many employers meet their payroll obligations.

For employees whose wages are higher as a result of JobKeeper, you don’t have to pay additional superannuation, as their SG payments will be based on their earnings before JobKeeper. SG payments for employees who earn more than $1500 a fortnight (and JobKeeper makes up part of their earnings) will still be calculated according to their earnings.

READ MORE: FAQs ON GOVERNMENT ASSISTANCE FOR BUSINESS

 

Investment performance update

Read the latest updates from the AustralianSuper investment team and see how the fund has responded to COVID-19 market volatility.

READ MORE: INVESTMENT ARTICLES

 

Business and industry updates

Early access to Super

Many AustralianSuper members who have been severely financially impacted as a result of COVID-19 have taken advantage of the Government's temporary early access initiative which gives them access to up to $20,000 of their super over two payments.

People financially affected by COVID-19 may be eligible to access up to $10,000 before 1 July 2020, and a further $10,000 from 1 July 2020 to 24 September 2020. More information on early access to super is available on the AustralianSuper website along with a reminder for members to think about other types of financial support they could be accessing and the long-term effects on retirement savings. 

READ MORE: TEMPORARY EARLY ACCESS TO SUPER

 

Outstanding SG payments? The Superannuation Guarantee amnesty is now law

If you have outstanding SG amounts, you can apply to the ATO before 7 September 2020 to take advantage of the Superannuation Guarantee Amnesty. Under the terms of the amnesty, eligible businesses pay what’s owing and claim deductions without incurring admin charges or penalties. You’ll need to declare and pay any SG shortfalls and interest charges. Payments made by 7 September 2020 can be claimed as tax deductions.

Payment plans can be arranged through the ATO and if your business has been affected by Covid-19, you can apply for a flexible payment plan that extends beyond 7 September 2020.

 

Changes to salary sacrifice arrangements

The Government has made changes to the Superannuation Guarantee (Administration) Act 1992 which impact on salary sacrifice arrangements and mean that:

  • contributions made as part of salary sacrifice arrangement don’t count toward the discharge of an employer’s SG obligations, and
  • SG must be paid on the pre-salary sacrifice base.

USEFUL INFORMATION: SALARY SACRIFICING

 

Your Superannuation, Your Choice

The Your Superannuation, Your Choice bill was passed by the House of Reps earlier this year but has been delayed as a result of COVID-19.

The proposed changes will let employees under enterprise agreements or workplace determinations made after 1 July 2020 choose their own super fund for payment of employer contributions. This means some staff could change super funds.

If you’re concerned about paying into multiple accounts, it may be worthwhile to consider using QuickSuper. Free for employers, QuickSuper lets you make one payment for all your employees, no matter what super fund they belong to.

READ MORE: QUICK SUPER CLEARING HOUSE

 

A simpler, fairer insurance system for under 25s and members with low balance accounts

The Federal Government’s Putting Members’ Interests First (PMIF) legislation means members can opt-in for insurance if they are:

  • new members under 25 years old, and/or
  • have accounts with balances below $6,000

AustralianSuper introduced opt-in arrangements for its under 25s members back in 2018 in an industry-first move to prevent account erosion and make the system fairer for young members.

FIND OUT MORE: PUTTING MEMBERS’ INTEREST FIRST (PMIF)

 

Protecting Your Super (PYS) Package removes unnecessary fees and insurance costs

Coming into effect from 1 July 2019, Protecting Your Super means

  • fees on accounts with $6,000 or less will be capped at 3%,
  • exit fees will be abolished to remove a barrier to consolidating accounts,
  • inactive low-balance accounts will be transferred to the ATO after 16 months, and
  • insurance cover on inactive accounts will be cancelled after 16 months unless the member decides to extend their cover.

FIND OUT MORE: PROTECTING YOUR SUPER

 

Member products and services

Find out member numbers in a flash

AustralianSuper members will need their member number to access the AustralianSuper App, and their online account. To find out their member number your staff can use the new ‘Find my member number’ tool.

Handy for when staff approach you or your payroll team for help. All they’ll need is their date of birth, postcode, email or mobile phone number to get their number.

TAKE A LOOK: FIND MY MEMBER NUMBER TOOL

 

Grief Support Service – there when it’s needed most

AustralianSuper members who have lost a loved one or have received a terminal illness diagnosis can access Grief Support sessions for themselves (or immediate family members) through their insurance cover with our provider, TAL.

If you have a staff member who may benefit from this service, we encourage them to get in touch with their Claims Case Manager to find out if they are eligible.


This information is general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 

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