The budget of 13 May announced changes to superannuation guarantee rates, but also changed the government’s previous plans. 

The new position is that:

  • the rate of contribution will increase to 9.5% on 1 July 2014
  • there then will be no further increase until 30 June 2018
  • the rate will then increase by 0.5% each year until it reaches 12% in 2022/2023, one year later than the government’s previously proposed end date, and 4 years later than under the Gillard government legislation.

The important point is therefore to increase SGC contributions from 9.25% to 9.5% effective from 1 July.  And after that, wait for any news of any further changes to the scheme that might occur before July 2018!