TWUSUPER Employer Update June 2021

June 2021

Super Guarantee to increase from 1 July

The Super Guarantee employers must pay to eligible employees is increasing from 9.5% to 10% from 1 July 2021. These payments must be made at least quarterly.

In simple terms, the Superannuation Guarantee requires that the minimum super an employer needs to pay an employee is 9.5% of that employee’s gross salary. See twusuper.com.au/payments for an overview of when you should pay super.

This information is of a general nature and does not take into account your personal objectives, situation or needs. Before acting on this information, you should consider your objectives, financial situation and needs. A copy of the Product Disclosure Statement should be obtained from TWUSUPER (at www.twusuper.com.au or by calling 1800 222 071) and considered carefully before you make a decision to acquire the product or continue to hold the product. This document has been prepared and is issued by TWUSUPER. TWU Nominees Pty Ltd, ABN 67 002 835 412, AFSL 239163, is the trustee of TWU Superannuation Fund (TWUSUPER) ABN 77 343 563 307 and the issuer of interests in it.

$450 monthly threshold scrapped in 2021 budget

Employers will need to make Super Guarantee payments for more employees from next year, with the government seeking to remove the $450 monthly minimum income threshold.

Currently, employers do not need to pay superannuation for employees who earn less than $450 per month. The government plans to remove this threshold entirely, in a bid to improve equality in the super system, as the majority of workers who earn less than this monthly amount are women.

The government plans to introduce legislation to make this change by 1 July 2022, and it would come into effect at the start of the first financial year after the legislation is passed by Parliament.

Changes for new employees from 1 November

Amendments to the Your Super Your Future legislation mean that you no longer have to change your onboarding processes for new employees and their super from 1 July.

The new process of 'stapling' employees to their current fund when they change employers will instead begin from 1 November 2021.

TWUSUPER is preparing resources to help employers with the new processes coming for employers as a result of the legislation. Keep an eye on twusuper.com.au/employer for the latest updates to help you get ready for these changes.

It's important to note that new employees can still choose to join TWUSUPER if they wish. For example, if they want to benefit from insurance tailored for workers in the transport industry.

Our Account Managers are here to help

Our Account Managers are here to help you navigate your employer super obligations and prepare your employees for retirement.

See twusuper.com.au/account to find your local Account Manager and their contact details, or use the online form at the bottom of the page to request a call back.

Your account manager can provide you with:

Tailored workplace education sessions for your employees
Help with your super contributions (including clearing house set-up and support for Single Touch Payroll)
Legislative super updates that affect your business
An understanding of your default super arrangements and obligations