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Is your business prepared for MySuper come 1 January?

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The ATO is urging employers to be aware of their obligations in the lead-up to the compulsory changes to default super, which commence on 1 January 2014. From this date, superannuation guarantee contributions will need to be paid into funds that comply with MySuper – a simplified, cost-effective super product that funds will offer to employers from 1 January 2014.

“As an employer, you should check that the default fund you’re currently using provides a MySuper product, or plans to do so by the new year deadline,” says ATO Deputy Commissioner, Superannuation, Alison Lendon.

“If your existing default fund does not offer a MySuper product by 1 January 2014, you will need to switch to a fund that does.”

The ATO says many super funds have already launched MySuper products, and will continue to do so until the end of the year, with funds contacting employers to advise of the new arrangements.

“We expect that for almost all employers, your existing default fund will offer a MySuper product, so you won’t have to make any changes,” says Lendon.

“However, if you haven’t heard from your super fund or want to know more about their MySuper product, contact your fund before the end of the year.”

The ATO has provided three steps for employers to follow to be ready for MySuper:

  1. Check: Check your existing default fund arrangements. Has your default fund advised you about MySuper changes?
  2. Contact: If you have not heard from your default super fund, contact them now.
  3. Contribute: After 1 January 2014, make super guarantee contributions with your MySuper arrangements in place.

 

Published on: Friday, December 20, 2013

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