Your personal Superannuation Comparison Tool for 2022/23

Are you ready to take control?

Follow these easy steps and compare your superannuation fund’s performance against other funds to make the right choice.

This will be possible if you have a MySuper fund as the ATO’s Your Super comparison tool as it can help you compare different MySuper products and choose a superannuation fund that meets your needs.

What is a MySuper fund?

A MySuper fund is a low-cost superannuation product and is usually the default account for people who don’t choose their own superannuation fund when they start a new job.

Many large Australian Prudential Regulation Authority (APRA) regulated superannuation funds (ie, retail, industry and corporate funds) can all offer MySuper accounts to members in accumulation (ie, non-retirement) phase. MySuper funds are simple accounts that generally have the following basic features:

■Simple investment strategy options – depending on the fund, you will be put into either a single diversified investment option or a lifecycle investment option based on your age.

■Lower fees – you don’t pay for unnecessary features that you don’t need.

■Default insurance options – you can easily opt out of the insurance arrangements if you wish.

■Easy to compare – you can easily compare MySuper funds based on investment performance, cost and insurance.

YourSuper comparison tool

You can find out about and compare MySuper products by using:

■Your superannuation fund’s product disclosure statement (PDS) for the MySuper product, or

■The ATO’s YourSuper comparison tool. If you can’t find your current account type within the MySuper products list, your account may not be a MySuper product. The best way to confirm whether your account is a MySuper product is by contacting your superannuation fund directly.

What does the YourSuper comparison tool do?

The YourSuper comparison tool can compare MySuper products based on only a few key differences.In particular, the YourSuper comparison tool:

Displays a table of MySuper products ranked by fees and net returns (updated quarterly).

■Allows you to select and compare in more detail up to four MySuper products at a time.

■Links you to a superannuation fund’s website when you select a MySuper product from the table.

■Can show your current superannuation accounts alongside other MySuper products (if you access the personalised version through myGov)

■Provides links to help you consolidate your superannuation accounts.

APRA assesses the annual performance of each MySuper product. As such, the investment performance column will provide one of the following results for each fund:

■Performing – the product has met or exceeded the performance test benchmark

■Underperforming – the product has not met the performance test benchmark

■Not assessed – the product had less than 5 years of performance history and has not been rated by APRA.

Using the YourSuper comparison tool

To access a personalised version of the tool which allows you to view and compare your existing MySuper products:

Log in to ATO online services through myGov, and

■Go to the Super drop-down menu and select Information, then select Your Super comparison.

You can also access a non-personalised version of theYourSuper comparison tool without logging into myGov by:

■Visiting ato.gov.au and search for “Your Super comparison tool”

■Start searching for your own MySuper product name.

If you have any questions regarding your Super obligations – de Kretser is here for you.

Need more information?
If you need help comparing your superannuation fund or need assistance understanding how the comparison information relates to your circumstances, we are here to help, so please contact us for further information.

We look forward to working with you.

T: +61 3 9550 6900

E:admin@dekretser.com.au

This is a de Kretser Client Information Newsletter keeping you on top of the issues, news and changes you need to
know.

To stay informed and connected, follow us on LinkedIn and Facebook


Superannuation simplified for your business – in 2022/23

Here at de Kretser – our team have compiled a simple guide to help your business with it’s Super responsibilities in the new Financial year.

You will have heard by now that business Superannuation contribution in Australia has increased to 10.5%  

The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will then steadily increase by 0.5% each year until it reaches 12% on 1 July 2025 – the following numbers tell the story –

PeriodSG rate (%)
1 July 2015 – 30 June 20169.5%
1 July 2016 – 30 June 20179.5%
1 July 2017 – 30 June 20189.5%
1 July 2018 – 30 June 20199.5%
1 July 2019 – 30 June 20209.5%
1 July 2020 – 30 June 20219.5%
1 July 2021 – 30 June 202210%
1 July 2022 – 30 June 202310.5%
1 July 2023 – 30 June 202411%
1 July 2024 – 30 June 202511.5%
1 July 2025 onwards12%

The increase to the superannuation guarantee (SG) rate begins from 1 July 2022 and will see more employees (and certain contractors) entitled to additional SG contributions on their pay.

If you have employees, what this will mean depends on your employment agreements.

If the employment agreement states the employee is paid on a ‘total remuneration’ basis (base plus SG and any other allowances), their take home pay might be reduced by 0.5%. That is, a greater percentage of their total remuneration will be directed to their superannuation fund.

For employees paid a rate plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their SG payments.

But what happens when income earned before 30 June is paid after 30 June 2022 – will employees be entitled to the higher SG rate of 10.5%?

SG based on when an employee is paid

On 1 July 2022, the SG rate increased from 10% to 10.5%. In some cases, an employee’s pay period will cross over between June and July when the rate changes.

However, the percentage employers are required to apply is determined based on when the employee is paid, not when the income is earned.

The rate of 10.5% will need to be applied for all salary and wages that are paid on and after 1 July 2022, even if some or all of the pay period it relates to is before 1 July 2022.

This means if the pay period ends on or before 30 June, but the pay date falls on or after 1 July, the 10.5% SG rate applies on those salary and wages. The date of the salary and wage payment determines the rate of SG payable, regardless of when the work was performed.

EXAMPLE

Nicholas is an employee of ABC Pty Ltd.

If Nicholas performed work:

  • In June (or partly in June and partly in July) but he was paid in July, the SG rate is 10.5% on his entire payment and contributions totalling 10.5% of his ordinary time earnings for the September 2022 quarter must be made to his superannuation fund by 28 October.
  • In July but was paid in advance (before 1 July), the SG rate is 10% and contributions totalling 10% of
    his ordinary time earnings for the June 2022 quarter must be made to his superannuation fund by 28 July.

Please also note the following changes to the SG Threshold

$450 super guarantee threshold removed
From 1 July 2022, the $450 threshold test will be removed and all employees aged 18 or over will need to be paid superannuation guarantee regardless of how much they earn.
It is important to ensure that your payroll system accommodates this change so you do not inadvertently underpay superannuation.
For employees under the age of 18, super guarantee is only paid if the employee works more than 30 hours per week.

If you have any questions regarding your Super obligations – de Kretser is here for you.

Need more information?
There are many factors to consider regarding the information shown above. Please contact us if you would like more information, we are happy to explain and action your requirements.

We look forward to working with you.

T: +61 3 9550 6900

E:admin@dekretser.com.au

This is a de Kretser Client Information Newsletter keeping you on top of the issues, news and changes you need to
know.

To stay informed and connected, follow us on LinkedIn and Facebook


Prepare Now with de Kretser – EOFY 2021/22

As we collectively near the end of one of the most challenging financial years to date, the de Kretser team are here to assist in every aspect of your business.

We are gearing up and readying strategies we can implement together to reduce your taxable business, and personal, income for the 2021/22 period. 

Guiding you to your Greatest Return.

We have created a list pertinent to your individual and business situations – please consider each of them for maximum gain at the end of your financial year:

PRE-PAYING EXPENSESFor businesses with less than $50m turnover prepaid expenses (not exceeding 12 months) are deductible under  the prepayment rules, Please start thinking about prepaying rent, subscriptions, insurance, interest etc should cashflow permit
STOCK ON HANDIf you have a business that holds stock, ensure you complete a stock take at 30 June and keep a record of the market, cost and replacement values or assets which are obsolete.
ASSET ACQUISITIONS AND DEPRECIATIONA business with less than $50m turnover is entitled to claim an outright deduction for any plant and equipment you purchase (regardless of cost) from 6 October 2020 to 30 June 2023. If you plan on purchasing any assets please ensure they are purchased and installed prior to June 30, 2022, to obtain the tax deduction for the 2022 financial year. *Subject to the Motor vehicle depreciation limit of $60,733
COMPANY TAX RATE DIVIDENDS Provided the company is a trading entity, any dividends paid throughout the 2022 financial year will be paid out with a 25% franking credit. Any dividends paid out during the 2023 financial year will also be paid out with a 25% franking credit.

It is time now to also consider the following –

  • SUPER – It is time to ensure you pay all your employee’s JUN-22 quarter superannuation before June 30, 2022 to ensure a tax deduction for the  2021/22 tax year
  • REVIEWING THOSE THAT OWE –  It is time to review your list of customers and determine whether any bad debt can be written off prior to June 30, 2022 in order to claim a bad debt deduction
  • CRYPTOCURRENCY – The ATO is data matching all cryptocurrency transactions. Please ensure you keep accurate complete records and can provide details of cost, quantities and dates of acquisitions and sales
  • WORKING FROM HOME – If you work from home you are able to claim an expense for your hours worked, please keep record of this for the shortcut method. If you want to utilise the actual method – please keep receipts for Telephone, Internet, Gas, Electricity, Stationery etc.

Begin the process now with de Kretser –

We have many tools for you to ready your EOFY, to explore please click here.

Once you have gathered all required documentation, please contact our team to book an appointment to discuss your requirements, online or Face to face. Please contact us regarding any questions you may have.

T: +61 3 9550 6900 E:admin@dekretser.com.au

This is a de Kretser Client Information Newsletter keeping you on top of the issues, news and changes you need to
know.

To stay informed and connected, follow us on LinkedIn and Facebook