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!