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The Australian Federal Government has introduced new legislation that changes the way businesses report on employee
information like salary and wages, pay as you go (PAYG) tax and superannuation.

Don’t worry, you’ll still be paid the same.

The initiative – known as Single Touch Payroll (STP) – will not change how you are paid and you will continue to receive a payslip.

What it means is that every time we run our payroll, we will be submitting employee pay information in real-time to the Australian Tax Office (ATO).

We will start reporting from 31 May 2019.

After that date, you will be able to see your year-to-date income, tax and super on the myGov website.

Here are some of the benefits for you.

Year-to-date

Each time we pay you, your year-to-date tax and super information will be updated in myGov.

You’ll be able to see your total year-to-date earnings and tax throughout the year.

No Payment Summaries

There will be a change to the way you receive payment summaries. From 2019, we will no longer send you payment summaries.

The ATO will make this information available to you through myGov and it will be called an income statement.

Your Super

Your Superannuation Fund will also report to the ATO and you will be able to view this information on myGov.

This means you will be able to keep up to date with your superannuation contributions throughout the year.

Tax

If you prepare and lodge your own tax return, more information will be pre-filled through the ATOs online system myTax.

Your registered tax agent will be able to access your STP information and your income statement to help prepare your tax return.

Learn more…

Next steps and timeline
Steps to setting up a MyGov account
2018/19 Payment Summaries
Information and Resources

Next Steps and Timeline

What’s next and when?

For us
We have already done a lot of planning and testing so that our systems are ready to start reporting to the ATO from 31 May 2019.
Here are key dates you need to know:

For you
From 31 May, you’ll be able to see your information in myGov.

You will see your information by logging into myGov and accessing ATO online services.

With real-time access to information, Ventia – like other employers – will no longer provide payment summaries at the end of each year to employees.

Instead, 2018/19 payment summary information will be available on the myGov website and will now be called an income statement.

The ATO will send a notification to your myGov inbox when your income statement is ‘tax ready’ so you or your tax agent can complete your tax return.

Employers have until 31 July to confirm employee details are tax ready, however this is likely to be available sooner. We will keep you posted.

It’s easy to set up and manage a myGov account if you don’t have one.

You can use your mobile number or email address to sign in.

Read the ATO’s guide for employees.

Follow the steps to setting up a MyGov account by watching the video below:

Steps to setting up a myGov account

The Australian government has also created a site to explain how to create a myGov account.

It’s not compulsory to have a myGov account. However, you won’t be able to see your year-to-date tax and super information online without one.

Information about how to set-up a myGov account is also available in different languages.

Information about 2018/19 Payment Summaries

With real-time access to information, Ventia – like other employers – will no longer provide payment summaries at the end of each year to employees.

Instead, 2018/19 payment summary information will be available on the myGov website from 31 July and will now be called an income statement.

You will receive an email to confirm when it’s available.

If you have your tax return prepared by an agent, your income statement will be available to them at the same time. Your registered tax agent will also be able to access your STP information.

The ATO has prepared this guide to accessing your income statement. Download the guide.

Information and Resources

For leaders: To keep your team updated please download our ToolBox talk.

For everyone: Download the ATO’s guide for employees

Visit this page to set up your myGov account

Visit this page for more information about accessing your income statement

Frequently Asked Questions

In the first instance, you can contact your Line Manager or your P&C Business Partner. Queries can also be emailed to the Reward Team at remuneration@broadspectrum.com.

Further information can be obtained on the Australian Taxation Office (ATO) website.

Your remuneration terms and conditions are set out in your contract of employment.

The superannuation guarantee changes relate to Australian employees only. New Zealand has a different system for retirement income and is not impacted by these changes.

Further information can be obtained on the Australian Taxation Office (ATO) website.

Any additional voluntary contributions in place will not impact the change to the superannuation guarantee rate. However, it is recommended that employees with additional voluntary contributions in place review these arrangements.

Additional voluntary contributions made on a pre-tax basis, including superannuation guarantee contributions, are deemed as concessional contributions. This means that where both superannuation guarantee and additional voluntary contributions (pre-tax) exceed the concessional contribution cap, additional tax will be paid on the contributions. Note that from 1 July 2021, the concessional contributions cap increases from $25,000 to $27,500 per annum.

If you wish to start, stop, or make changes to your additional voluntary contributions, please contact the relevant payroll teams as outlined below:

Legacy Ventia: peopleservices@ventia.com.au

Legacy Broadspectrum: payrollservices@broadspectrum.com

There are groups of Ventia employees whose terms and conditions are governed by an industrial agreement. These are wages employees. Wages employee’s remuneration is not administered under a Total Fixed Remuneration basis. Under the industrial agreements, remuneration is calculated as base rate plus allowances and benefits. Therefore, base pay rates and allowances will not change whilst the superannuation guarantee amount will increase accordingly.

As superannuation guarantee is legislated, employers must ensure that compliance is maintained on calculating and paying contributions. Penalties apply to employers who do not comply with the minimum requirements. Therefore, Ventia is not able to consider any proposals that result in non-compliance to the Superannuation Guarantee (Administration) Act 1992 (Cth).

The Federal Government sets the rate and it has changed over time starting at 3% in July 1992 (4% for annual payrolls above $1m). From July 2002 up until 2013, the rate had been at 9.0%. Following the Cooper Review which identified potential shortfalls in Australians’ retirement savings, the original Rudd Government introduced a plan to increase superannuation to 12%. Accordingly, from 1 July 2014, superannuation was increased to 9.5%. The increase to 10% was originally set to commence from July 2015 but successive governments have since slowed the gradual increase in the rate, delaying this increase until July 2021. Further increases are legislated to occur where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% Superannuation Guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Superannuation contributions are paid to all superannuation funds on a monthly basis during the last week of the month. Contributions are paid in arrears which means that the contributions processed in one month will be paid to superannuation funds in the following month. For example, the superannuation contributions (both superannuation guarantee and additional voluntary contributions) processed in the July payroll will be paid to all superannuation funds in the last week of August.

No. Superannuation guarantee is legislated, and employers must ensure contributions are calculated and paid according to the minimum requirements.

For salaried employees, Ventia provides you with a Total Fixed Remuneration (TFR) inclusive of base pay and superannuation guarantee. The TFR is funded by Ventia. The adjustment to the SG rate means that a change must occur for the elements that make up TFR.

The overall TFR will not change, but the increase to the superannuation guarantee contributions will mean that more savings will be directed to retirement income. The change from 1 July 2021 is the first of a series of changes where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% superannuation guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Salaried employees will see a change to the gross amounts applied to base pay and SG contributions. Total Fixed Remuneration (TFR) will remain unchanged.

This is illustrated in the below example.

TFR Element Current (p/a)

(Full Time Equivalent)

As at 1 July 2021 (p/a)

(Full Time Equivalent)

Base Pay $136,986 $136,364
Superannuation Guarantee $13,014 $13,636
Total Fixed Remuneration (TFR) $150,000 $150,000

In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

The SG rate change to 10% will come into effect from 1 July 2021.

Employers are required to pay SG contributions where an employee, aged 18 or over is earning $450 or more (before tax) in a calendar month. These obligations apply to Ventia Group employees. Ventia Group includes all entities of Ventia. The rules do not reduce or limit entitlements properly payable under an Enterprise Agreement or any other binding commitment of Ventia. Note that the Government announced in the budget a proposal to remove the $450 a month threshold. This will require it to be legislated on before being implemented.

No. SG is legislated by the Australian Federal Government and all employers must comply with the legislated requirements.

Australian salaried employees

All salaried employees are remunerated under a Total Fixed Remuneration (TFR) arrangement which is inclusive of SG payments. With the change to the SG rate, the TFR will remain unchanged with the base pay and SG values changing. This is illustrated in the example below.

TFR Element Current (p/a)
(Full Time Equivalent)
As at 1 July 2021 (p/a)
(Full Time Equivalent)
Base Pay $136,986 $136,364
Superannuation Guarantee $13,014 $13,636
Total Fixed Remuneration (TFR) $150,000 $150,000

*To calculate the base pay, divide the TFR by 1.095 (Current) or 1.10 (as at 1 July). Difference between TFR and base pay is the SG value.

In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

Australian wages employees

Wages employees are generally employed under the terms and conditions set out in their relevant industrial agreements. Under these agreements, remuneration is calculated as base rate plus allowances and benefits.

The change in the superannuation guarantee rate will mean an increase in the superannuation contribution by Ventia for each wages employee. This is illustrated in the example below. Note that SG is calculated on ordinary time earnings (OTE) which excludes overtime payments.

Remuneration Elements Current (p/a)
(Full Time Equivalent)
As at 1 July 2021 (p/a)
(Full Time Equivalent)
Base Rate $80,000 $80,000
Allowance 1 $15,000 $15,000
Allowance 2 $6,000 $6,000
Superannuation Guarantee $9,595 $10,100
Total $110,595 $111,100

On 1 July 2021, the Australian superannuation guarantee (SG) rate must increase to 10%. This is a 0.5% increase from the current 9.5%. The Australian Federal Government confirmed in the recent budget announcement that the change will be implemented. The SG is part of the remuneration you receive and is a set percentage of your ordinary time earnings.

There will be no changes to the way you lodge your tax return, whether you do this yourself or use an accountant.

You will not need to provide a payment summary as the ATO will already have this information pre-filled based on the information employers report to the ATO throughout the year.

Employers do not pay super to the funds each time a payroll is processed.

Legally all employers have until the 28th day after each quarter ends to pay superannuation.

Example: Contributions for January, February and March pays would not be paid until 28 April.

Ventia pay superannuation more frequently than quarterly. We pay super monthly generally two weeks after the end of each month. For example: January contributions are paid in mid-February.

It is not compulsory to have a myGov account.

If you don’t create one you will need to contact the ATO to get a copy of your income statement after 31 July 2019.

If you call before that date your information may not be finalised. You can phone the ATO on 13 28 61 for this information.

A myGov account is easy to set up, you will just need an email address to create your account. Watch this video for a how-to guide

Alternatively, you can go directly to my.gov.au, select ‘create an account’ at the bottom of the screen and follow the instructions.

Once your myGov account is set up, you can link it to ATO online services.

Although you will be able to view your year-to-date information from 31 May 2019, employers have until 31 July to finalise your income statements.

Check your MyGov account after 31 July for your 2018/19 income statement.

Once this is complete you will be able to lodge your tax return.

Your income statement will show your financial year-to-date salary and wages, the tax that has been withheld and your employer super reported amounts.

This information will be updated each time Ventia pays you. This is similar to the information you would normally see on your payslip.

After the end of each financial year, your income statement will have the information you need to prepare your tax return. This is the equivalent of your annual payment summary.

Some people may still call this a group certificate.

Ventia will not be providing employees with a payment summary at end of this financial year.

Instead, 2018/19 payment summary information will be available on the myGov website and will now be called an income statement.

The ATO will send a notification to your myGov inbox when your income statement is ‘tax ready’ so you or your tax agent can complete your tax return.

Employers have until 31 July to confirm employee details are tax ready, however this is likely to be available sooner.

We will keep you posted.

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