The Federal Government used the Budget to tidy up a number of superannuation loose ends, including providing for superannuation splitting and clarifying issues for employers. The Assistant Treasurer, Mal Brough, formally announced that from July 1 next year, Australians would have the option to split superannuation contributions with their spouse.
He said the measure honoured the Government’s 2004 election commitment and would allow low income or non-working spouses to accumulate their own superannuation.
“Splitting will be an additional service superannuation funds can choose to offer eligible members,” Brough said. “It will allow funds to offer more flexible products to meet the changing needs of Australians, particularly in a more competitive superannuation environment.”
The Minister also announced that the Government would be making life easier for employers with respect to late superannuation guarantee contributions.
Under the new arrangements, employer contributions made for an employee within 30 days of the guarantee due date will be used to offset any penalty the employer may incur.
Currently, employers who make late contributions to superannuation end up paying the amount again, because late contributions cannot be used to offset their liability to the Australian Taxation Office.
The Government also announced it would be ensuring that super contributions would be applied to the back-payment of wages to employees who had left a company.
