Changes to superannuation legislation, which will come into effect from 1 July 2008, create a number of issues to be aware of, including changes to the way super guarantee contributions are calculated; changes to employer-nominated super funds; and a new form for SMSF auditors.
Employers
Employers may have to change the way they calculate the super guarantee contributions they make on behalf of their employees, by basing their contributions on 'ordinary time' earnings.
Legislation has now passed, which will give employers more time to offset late super guarantee payments. This will help relieve employers from having to make double payments, however, penalties will still exist for late payments.
Employers also need to ensure that, from 1 July 2008, employer-nominated super funds comply with rules regarding the offer of minimum levels of life insurance death cover to members.
Auditors
The ATO has released a new form, the 'Auditor / actuary contravention report' (ACR), to be used by auditors of self managed superannuation funds to report contraventions of the Superannuation Industry (Supervision) Act and regulations to the ATO.
From 1 July 2008 auditors are required to:
- complete a series of tests (including financial thresholds and meeting the SMSF definition) the answers to which will clearly define whether a particular contravention is required to be reported
- report all prescribed contraventions for a fund that has been established for less than 15 months
- report whether the report is a new contravention report or a revised report for the same financial year that was lodged earlier
The new form must be used from 1 July 2008 regardless of the financial year of income being audited. Old ACR forms will no longer be accepted.
Further information
