Truckies should have more security with super payments from July 1. Image: Taras Vyshnya/stock.adobe.com
Truck drivers will begin receiving their superannuation with every pay packet from tomorrow under the federal government’s new Payday Super reforms.
The Australian Taxation Office (ATO) says employers will now be required to pay super guarantee contributions at the same time as wages, with the money needing to reach an employee’s nominated super fund within seven business days of payday.
For new employees or payments to a fund for the first time, employers will initially have 20 business days to make the payment before penalties apply.
Previously, employers could wait until the end of each quarter before making super payments, provided they reached the fund within 28 days of the quarter ending.
For truck drivers, who often change employers or work in an industry that has experienced a number of business failures in recent years, the reforms are expected to provide greater confidence that super is being paid regularly rather than accumulating as a quarterly liability.
The changes also mean retirement savings begin earning investment returns much sooner, with more frequent contributions expected to improve long-term balances through compounding.
The reforms introduce several other changes that transport operators will need to understand.
Super guarantee will continue to be calculated at 12 per cent, however it will now be based on a new concept known as “qualifying earnings”, which combines ordinary time earnings with certain other payments.
During last month’s Senate Estimates hearing of the Economics Legislation Committee, ATO Second Commissioner Jeremy Hirschhorn described the introduction of Payday Super as a “game changer” in helping to clean up the industry.
He said it would allow the ATO to triangulate contractor payment data, superannuation records and other intelligence to identify suspicious arrangements more quickly.
The Queensland Trucking Association has outlined more tips for employers here.