Employer Superannuation Obligations
All Australian businesses have responsibilities when it comes to superannuation. Cbus explains employers’ obligations and how Cbus can help.
Paying compulsory superannuation
Under Superannuation Guarantee legislation, the current super contribution rate payable to your employees is 9.5% of ordinary time earnings (OTE). However, this rate may be higher if there is an Industrial or Enterprise Bargaining Agreement (EBA) in place.
Super contributions do not have to be paid for:
- employees who earn less than $450 (before tax) per calendar month
- employees who are under 18 years old, and work 30 hours or less per week
Super must be paid for employees from the day they start work.
Giving employees ‘choice’ of super fund
When a new employee is eligible to choose their own super fund, you need to provide them with a Standard Choice Form within 28 days from their start date.
If your new employee doesn’t elect to choose a specific super fund, you must pay their super contributions into your nominated ‘default’ fund.
Once an employee advises you of their choice of super fund, you have two months to start paying contributions into that fund.
Choosing your default fund
A default super fund is the super fund that your business nominates as the best fit to take care of the superannuation needs for all your employees.
It’s important to choose a fund that acts in the best interests of your business, and your employees. (See below for information about selecting Cbus as your default fund).
As a business, you need to keep the following records in English for at least five years:
- records showing the Standard Choice Form has been provided to all eligible employees
- details of employees who do not have to be offered a choice form
- documents issued by the super fund showing you have made super contributions to an employee’s chosen fund (for example, annual record of contributions statement)
- records confirming that your chosen default super fund is a complying fund. This is usually found online, on the super fund’s website
Supplying tax file numbers
When an employee provides you with their Tax File Number (TFN), by law as their employer – you’re required to provide this information to their super fund within 14 days or when you make the first contribution on their behalf.
If a TFN is not provided, your employee will be unable to make any additional personal contributions and they may pay more tax on their super as a result.
SuperStream is a Government reform aimed at improving the efficiency of the super system that a business uses to make super contributions to their employees.
Under SuperStream legislation, all businesses should now be making super contributions on behalf of their employees online by submitting data and payments electronically.
How can Cbus help your practice?
Cbus makes super hassle-free for employers, with easy online payments and a dedicated customer service team. Cbus is a monthly paying fund. This means that super payments are to be paid into Cbus each month, so investment earnings on your employees’ accounts can begin as soon as possible.
Cbus offers advice and support on all superannuation matters. We can help you understand SuperStream requirements, online payment systems and many other super-related issues.
Cbus offers two options when it comes to online payment systems for businesses: Cbus Clearing House and Employer SuperSite. Both are available for Cbus employers to use at no cost, and both allow you to meet your obligations as an employer under SuperStream.
The Cbus Clearing House* is an online payment tool, which allows you to submit multiple employee super contributions into multiple super funds, including Cbus, using one data file and one payment.
Cbus will then distribute payments to Cbus members’ accounts, and into super fund accounts outside of Cbus, on your behalf, helping you to save time on paying super for your employees.
Employer SuperSite is an online employer super account and payment facility that allows you to:
- make super payments using BPAY®, Direct Debit or Electronic Funds Transfer (EFT)
- access and update your records, including employee details
- access your full transaction history as an employer, including access to payment reports.
- Cbus is an ACA Corporate Partner
Cbus is an ACA Corporate Partner.
Call Cbus Super Fund on 1300 361 784. (Mon-Fri 8am to 8pm
*The Cbus Clearing House is provided by Westpac Banking Corporation ACN 007 457 141 AFSL 233714 for Cbus employers.
This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy. Cbus Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262