The Superannuation Guarantee [SG] legislation requires businesses to contribute on behalf of each eligible employee to help save for retirement.
The SG rate is currently at 9.5% of an employee’s ordinary time earnings. It has been frozen at 9.5% since 2014, however as previously announced in the Federal Budget, and further to our article posted on 13.05.2021, we can now confirm that the SG rate will rise from 9.5% to 10% on 1 July 2021.
Under the current timetable, the SG rate is scheduled to rise half a per cent each year until reaching a final value of 12% by 2025.
To prepare for this rate increase on 1 July 2021, all employers should:
If you need working out the correct amount of super to contribute to your employees or assistance with any of the above matters, please contact our office.
– Ian Hogbin & Megan McKay
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.