The Australian Prudential Regulation Authority (APRA) released its Annual Superannuation Bulletin for the financial year to 30 June 2013.
The publication included the following:
Total superannuation assets increased during the year by $219.8 billion, or 15.7 percent, to $1.62 trillion. During this period;
- industry funds’ assets increased by 21.5%;
- small funds’ assets, which include self-managed super funds (SMSFs), single-member approved deposit funds and small APRA funds, increased by 15.5 percent;
- public sector funds’ assets by 15.4 percent;
- retail funds’ assets by 13.9 percent; and
- corporate funds’ assets by 9.1 percent.
Over the year, the industry-wide rate of return (ROR) for large funds (more than four members) was 13.7 percent. Over the 10 years from 30 June 2004 to 30 June 2013, the average industry-wide ROR for large funds was 6.0 percent a year.
APRA also reported that over the eight years from 2006, the size and complexity of RSE licensee business operations increased, as did the average number of directors on RSE licensee boards and the proportion of these directors who were women. In addition, APRA reported that there were fewer directors who sat on more than one RSE licensee board in 2013 than in 2006.
Meantime, the Tax Office published its Workforce education news for 2013. The issue contains updates about tax and superannuation entitlements and obligations. Here are the highlights:
MySuper changes – what employers need to know
From 1 January 2014, employers need to make super contributions to a fund that offers a MySuper product for any employee who does not nominate a preferred choice of fund.
During 2013, super funds have been applying for authorisation to offer MySuper products to employers. Super funds will be contacting employers directly to advise of their authorised MySuper products and arrangements for paying super contributions.
If you have not heard from your existing default fund, you should contact them now.
Getting super obligations right
Most employers do the right thing when it comes to making super contributions on behalf of their employees. Unfortunately, some employers do fail to meet their obligations.
Each year the Tax Office focuses on different industries to check they’re on the right track. This year it is paying particular attention to three industries:
- hairdressing and beauty services;
- clothing retail; and
- management advice and consulting services.
The Tax Office has found employers often make simple mistakes that are easy to fix. Common mistakes include:
- not paying the right super contribution (the current rate is 9.25 percent);
- missing the quarterly cut-off dates (28 October, 28 January, 28 April and 28 July); and
- not paying super for contractors if the contract is wholly or principally for the labour of that person
In addition, the Tax Office will be looking for companies that do not keep accurate records that show:
- the amount of super paid and how it was calculated;
- eligible employees have been offered a choice of super fund;
- how reportable employer super contributions were calculated;
- not providing an employee’s tax file number (TFN) to their super fund; and
- failing to lodge a super guarantee charge statement.
If you have questions, consult with your CAAA adviser. If you are not already a CAAA client, call 02 9299 1200 to arrange a complimentary review of your Super obligations.