Under the Commonwealth Superannuation Guarantee Administration Act 1992 employers are required to make a minimum level of contributions into a complying superannuation fund on behalf of all employees. The rate of contributions will increase from the current 7% to 8% of salary per annum starting from 1 July 2000 up to 30 June 2002. From 1 July 2002 the rate will increase to 9% of salary per annum.
Employers need to take account of the increase in Superannuation Guarantee contributions to 8%, along with leave loading of 1.35% when calculating the remuneration package for non-SES job advertisements.
Employers who fail to provide the minimum level of support are penalised by having to pay the Superannuation Guarantee Charge to the Australian Taxation Office.
Where contributions are made to the NSW public sector superannuation schemes, compliance with these schemes will ensure that Commonwealth requirements are met. If an employee has elected alternative arrangements, employers will need to make sure that they satisfy their superannuation guarantee employer obligations for those employees.
Enquiries about public sector superannuation scheme contributions may be directed to the Superannuation Administration Corporation of NSW on (02) 9238 5555 or 1800 451 112.
C. Gellatly Director-General