As part of the 2021 Federal Budget the changes to the superannuation guarantee were confirmed.
Meaning that starting from 1 July 2021 until 1 July 2025, the superannuation guarantee for eligible workers will increase by 0.5% each year as follows:
|Superannuation Guarantee Rate||Effective Date|
|10%||1 July 2021|
|10.5%||1 July 2022|
|11%||1 July 2023|
|11.5%||1 July 2024|
|12%||1 July 2025|
Failing to increase the superannuation guarantee by the required dates may attract the superannuation guarantee charge (including interest and an administration fee) in addition to any penalties levied by the ATO.
Practically, all employers ought to review their employment contracts to ascertain whether the increase in the superannuation guarantee ought to captured within the employee’s current renumeration package or whether the extra statutory superannuation must be paid in addition to an employee’s base salary.
Important Disclaimer: The content of this publication is general in nature and for reference purposes only. It is current at the date of publication. It does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.