The Senate has passed legislation freezing the minimum superannuation contribution necessary for employer’s to avoid a superannuation guarantee charge at 9.5 percent for the next seven years. The legislation has now commenced.
Previously, the current superannuation guarantee charge rate of 9.5 percent had been scheduled to increase to 12 percent by 1 July 2019, at the rate of 0.5 percent per financial year. However, the Federal Government indicated in its May Budget that it would seek to freeze the superannuation guarantee charge rate at 9.5 percent until 1 July 2018, thereby delaying the full increase until 1 July 2022. The new legislation further delays the superannuation increase. It freezes the superannuation guarantee charge rate at 9.5 percent until 30 June 2021, after which it will increase by 0.5 points on 1 July every financial year thereafter until it reaches 12 percent in 2025.
See Schedule 6 of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 (Cth).