When introduced in 1992, compulsory superannuation contributions were to increase over time between 1992 to 2002 from 3% to 9%. The Henry Review in 2010 proposed the rate be raised and legislation was passed to enable the continued increase of the rate over time to 12% by 2025.
What are the changes in 2021?
The compulsory superannuation guarantee contribution (SGC) rate will increase on 1 July 2021 to 10% (up from the current rate of 9.5%) for all eligible employees*
* Generally, all employees earning $450 or more per month (under the current rules) are eligible for SGC. Note that there are some additional eligibility rules for some employees such as those aged under 18 years.
How will the SGC rate change impact you?
Employers need to ensure their payroll systems are updated so that all eligible employees are receiving contributions at the increased rate of 10% from 1 July 2021.
If you need any advice or assistance on what impact the new increase to superannuation will have on your business and practical, straightforward advice and tools on how to minimise wage cost blowouts and time-consuming staff issues then please contact the expert team at Sharpe Workplace Solutions on 1300 135 782, or email your enquiry to info@sharpews.com.au.
The above information is intended as general information only and not as professional advice. If you need further guidance, please do not hesitate to contact us.
Comments