Superannuation Changes in 20143 February 2014
Your super obligations changed at the beginning of the 2014 financial year. Cbus provides an update on recent changes and explains how they can help.
July 2013 saw the beginning of the federal government’s Stronger Super rollout. Stronger Super aims to improve outcomes for both employers and employees by introducing two major reforms:
- MySuper – a simple, low-cost super product.
- SuperStream – a package of measures to improve the back office of super, making super transaction processing easier, cheaper and faster.
What does MySuper mean for employers?
From 1 January 2014, employers must pay compulsory Superannuation Guarantee (SG) contributions into a MySuper product for employees who haven’t chosen a super fund or made an investment choice.
What does SuperStream mean for employers?
If you have 20 or more employees, from 1 July 2014 you’ll need to pay their super electronically under the Government’s SuperStream requirements. For small employers – those with 19 or fewer employees – the requirements take effect from 1 July 2015.
How can Cbus help?
Cbus officially launched its MySuper product on 1 October 2013. Cbus employers don’t have to do anything, as our default investment option, Growth (Cbus MySuper), is MySuper compliant.
The Cbus Clearing House
If your employees have a choice of super fund, you’re probably paying super into several different funds – increasing the time and complexity of super administration. Registered Cbus employers don’t need to worry about this thanks to our free online tool – the Cbus Clearing House.
This lets Cbus employers pay super for all their employees via one simple payment. The Cbus Clearing House then distributes employer super payments to all funds (including Cbus) on the employer’s behalf. Those super funds will then use their normal systems to allocate payments to their members’ accounts.
Employers can log onto Cbus Clearing House at any time to confirm when the super payments have been sent to the relevant super funds. The CBus Clearing House means employers have more time to spend on their business and less time doing administration.
To start using the Cbus Clearing House, call Cbus Service Centre on 1300 361 784 or go to www.cbussuper.com.au/registernow and follow the prompts to join.
This article was first published in ACA Communique, November 2013. Cbus is an ACA national sponsor.