INSIGHT

Superannuation rate increase

By Muirgen O'Seighin, Andrew Wydmanski
Employment & Safety

In brief 1 min read

The Superannuation Guarantee rate is scheduled to increase from 9.5% to 10% on 1 July 2021, although a final decision will be made in the May 2021 Budget.

How does it affect you?

  • Unless the Federal Government amends the legislation, employers will be required to contribute an additional 0.5% to employees' superannuation accounts to satisfy their obligations under the Superannuation Guarantee (Administration) Act 1992 (Cth).
  • Employers should start considering how the increased contributions will be implemented, including reviewing employment contracts to determine whether employee remuneration is inclusive of superannuation contributions.