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INPRACTICE   Take the superannuation guarantee contributions test

SUPER

Take the superannuation guarantee contributions test 

In light of more onerous penalties for non-compliance, it pays for all employers to be reminded of their super guarantee (SG) contributions obligations. Think you’re up to speed with the most recent changes and when they come into effect? Take the following quiz to find out. Answers at the end.

Mark Story | January 2020

1) When does the superannuation guarantee charge rise from 9.5 per cent to 10 per cent?

A) 1 January 2019
B) 1 July 2021
C) 1 July 2020
D) After the next federal election

2) According to Grattan Institute analysis, lifting the SG rate to 12 per cent will:

A) Reduce lifetime income by A$30,000 for middle-income (also called typical) workers
B) Increase lifetime income by A$30,000 for middle-income workers
C) Have no impact
D) Increase the cost of doing business

3) The federal government has announced plans to further change the legislated SG:

A) True
B) False

4) When do SG contributions for a relevant financial quarter need to be received by the super fund in order to avoid the SG charge?

A) Whenever it’s convenient
B) No later than 28 days after the end of the financial quarter
C) No later than two months after the end of the financial quarter
D) No later than 10 days after the end of the financial quarter

5) When is the SG rate expected to reach 12 per cent?

A) 1 July 2022 onwards
B) 1 January 2024 onwards
C) 1 July 2023 onwards
D) 1 July 2025 onwards

6) How is the SG contribution calculated?

A) On last year’s earnings
B) As a percentage (currently 9.5 per cent) of an employee’s ordinary time earnings (OTE) and paid on top of wages or salary
C) As a percentage of net profit
D) By the rate of inflation

7) SG contributions are paid on overtime payments:

A) True
B) False

8) The current pushback against raising SG contributions to 12 per cent is due to concerns that:

A) Only higher-income earners will benefit
B) Middle-income earners will be worse off
C) Super funds will benefit the most
D) All of the above

9) What is the maximum SG contribution an employer is normally required to pay per quarter for the income year 2019-2020?

A) A$7599
B) A$5250.65
C) A$10,000
D) No limit

10) The Fair Work Commission concluded that employers offset the increased cost of a higher SG contribution by cutting annual wage increases by a corresponding amount:

A) True
B) False

11) Liberal Party Senator Andrew Bragg is calling for super to be made voluntary for anyone earning under:

A) A$50,000 annually
B) A$1 million annually
C) A$75,000 annually
D) A$18,200 annually

12) Instead of raising the SG guarantee to 12 per cent, the Grattan Institute is arguing for:

A) Fee reductions and flaws in the super system to be addressed
B) All SG contributions to be abolished
C) Compulsory unionism
D) More annual sick leave

13) To provide adequate retirement income, based on Rice Warner modelling Australians without the Age Pension would need an SG contribution of:

A) 17 per cent
B) 25 per cent
C) 22 per cent to 27 per cent
D) 15 per cent to 20 per cent

14) Based on Rice Warner modelling, an SG contribution below 10 per cent would result in median income earners relying on the Age Pension for most of their retirement income:

A) True
B) False

15) SG contributions are not required on behalf of those:

A) With less than A$450 earnings in any calendar month
B) With less than A$540 earnings in any calendar month and those above age 70
C) No one is excluded
D) Born overseas

16) SG contributions are tax deductible to the employer (when made on time):

A) True
B) False


Answers: 1) B, 2) A, 3) B, 4) B, 5) D, 6) B, 7) B, 8) D, 9) B, 10) A, 11) A, 12) A, 13) D, 14) A, 15) A, 16) A