Superannuation guarantee (SG) contributions are the compulsory contributions made by employers into eligible employees’ superannuation accounts. The Federal Government has confirmed that the SG rate will increase from 9.25% to 9.5% from 1 July 2014. Accordingly, you should ensure that you are prepared to pay the increased SG rate.
Proposed changes to timetable for further increases
As part of its 2014 Federal Budget, the Government announced changes to the timetable of SG rate increases. The proposed changes will freeze the SG rate at 9.5% until 30 June 2018, promoting certainty for business. The SG rate will increase to 10% on 1 July 2018, and will continue increasing by 0.5% each year until it reaches 12% on 1 July 2022 (see table below).
Legislation enacting the timetable of SG rate increases is expected to pass both Houses of Parliament in the coming months.
Click here to view table.