top of page

Essential 2024 Updates on Superannuation Entitlements for Employers

The Fair Work Commission, Australia's national workplace relations tribunal, has updated the superannuation guidelines across 147 awards, effective from April 9, 2024. These revisions ensure the awards are consistent with the latest superannuation regulations, including the entitlement to superannuation contributions outlined in the National Employment Standards (NES), which took effect on January 1, 2024.



Superannuation Rights under the NES

The NES now includes a provision for superannuation contributions, granting most employees covered by the NES the ability to pursue legal action under the Fair Work Act for any discrepancies in superannuation payments. Although employers are already required to make superannuation contributions for eligible employees under superannuation guarantee laws, the Australian Taxation Office (ATO) continues to oversee compliance with these obligations.


Updated Superannuation Rules in Awards

The updates primarily integrate existing superannuation legislation rules, focusing on the rights and obligations of both employers and employees. Key updates include:


  1. Employees generally have the option to select their own superannuation fund.

  2. If a new employee does not select a fund, the employer must consult the ATO to check if the employee belongs to a stapled superannuation fund. If so, contributions should be made to this stapled fund.

  3. If an employee does not choose a fund and does not belong to a stapled fund, the employer fulfills the fund choice requirement by contributing to a superannuation fund listed in the award, assuming the fund accepts contributions for the employee.


Recommended Actions

It is advisable to have a default super fund, specifically one recognised in the applicable award. Employers should also implement a robust payroll system that supports electronic onboarding, enabling new employees to select either their chosen super fund or the employer's default fund. This system should automatically calculate and facilitate super payments through a clearing house.


About Essential HR


Simplify HR processes, stay compliant & maximise performance


Unlock the full potential of your business by harnessing the power of Essential HR.


We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way. 


Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease.


Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations. 


No matter the scale or urgency of your HR needs, we've got you covered.


Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership. 


email us now at hr@esshr.com.au


Comentários


bottom of page