The Superannuation Guarantee Rate is due to gradually increase from the current 9.5% to 12% over the next 5 years as per the table below:
|Year starting 1 July 2020||9.5%|
|Year starting 1 July 2021||10%|
|Year starting 1 July 2022||10.5%|
|Year starting 1 July 2023||11%|
|Year starting 1 July 2024||11.5%|
|Year starting on or after 1 July 2025||12%|
On 1 July 2021, the superannuation guarantee rate will increase to 10%. As an employer you will need to ensure that you are paying your employees the correct amount of superannuation. Please check your industrial instrument to determine if more generous provisions are applicable.
Due to this increase it will result in an update to the payroll system to increase superannuation amount payable. Some employers will have the capacity to absorb this extra amount into the current remuneration amount paid – dependent on your employment agreements.
If you are currently paying an annualised salary that includes an amount for superannuation, you may have the ability to absorb the increase to the super guarantee without incurring any further costs to you as the employer. This will result in a decrease to the take home pay of your employees, and you will need to communicate this information to them.
The information provided in this article is general in nature. If you have any questions regarding the superannuation guarantee rate increase, please contact our office.