13/02/2024
As of 1 January 2024 the National Employment Standards (NES) include a right to superannuation for national system employees.
The Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023 has amended the Fair Work Act 2009 by, among other things, requiring national system employers to make contributions to a superannuation fund for the benefit of an employee, to avoid liability to pay the superannuation guarantee charge. The new NES obligation will apply to all organisations currently covered by the NES.
In effect, this means employers covered by the amendments will have an obligation under Australia’s superannuation legislation and the Fair Work Act to make superannuation contributions of at least 11 per cent (set to increase to 11.50% from 1 July 2024).
There has been no change to the superannuation guarantee amount nor the superannuation guarantee charge, and the Australian Taxation Office (ATO) retains primary responsibility for enforcing employers’ compliance. However, inclusion of the existing right to superannuation in the NES provides a streamlined and more accessible means for a wide range of national system employees to recover any unpaid superannuation. Employees, employee organisations and Fair Work Inspectors will be able to apply to a court to enforce the right to superannuation under the NES, if action has not already been commenced by the ATO.
For more information on superannuation obligations for employers, please reach our to our qualified team.