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Superannuation Guarantee increases coming

by | May 24, 2021 | C1: Commitment, Fair Work, Wage Obligations

The Superannuation Guarantee (SG) is the minimum percentage of ordinary time earnings before tax that an employer has to pay an employee (or a contractor deemed to be an employee for superannuation purposes by the ATO). It is currently 9.5% and has been at that rate since 1 July 2014.

However, it is increasing to 10% from 1 July 2021 and further annual increases are scheduled as follows:

  • 10.5% from 1 July 2022
  • 11% from 1 July 2023
  • 11.5% from 1 July 2024
  • 12% from 1 July 2025

Currently, employees who earn less than $450 per month are excluded from eligibility for the SG but the Federal Government has recently announced its intention to remove that qualification with effect from 1 July 2022.

The Superannuation Guarantee is a statutory obligation – it is mandatory and failure to meet that obligation can result in prosecution for breach of the legislation and enforceable orders for back payment of unpaid superannuation contributions.

Need to update your employment contracts?

Need clarification on these changes?

Contact us at enquiries@ridgelinehr.com.au if we can be of assistance.

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