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Jodie Williams, the director of Action Dance Academy, finds herself among the nearly one million small business owners gearing up for a significant change in the way employee superannuation payments are handled.
“It’s quite a substantial adjustment,” Williams shared with 9News.
“There may be moments when managing cash flow becomes challenging.”
Starting July 1, employers will be required to synchronize superannuation payments with wage payments rather than making them on a quarterly basis.
These super contributions must reach the employees’ funds within seven business days.
If it is late, penalties of up to 60 per cent of the shortfall plus interest can apply.
Employment Hero superannuation general manager Rob Dunn said up to 58 per cent of employers were unaware of the payday super changes.
“Therefore they haven’t started to change their process to get ready,” Dunn said.
“So anyone who’s using that platform should be looking to make sure that they’re ready to change to modern embedded solutions.”
The earlier your money hits your fund, the more time it has to grow.
For example, a 25-year-old whose super is paid fortnightly instead of quarterly could earn an extra $4300 by retirement.
Each payday, employees should check that 12 per cent of their pay has gone into their super fund.
Employees can use the Australian Tax Office’s estimate tool to help work out the correct number.
If money is missing, employees should talk to their bosses.
If that fails, employees should lodge a complaint with the Australian Tax Office online.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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