Superannuation Guarantee Contributions

30 June 2021

As we look towards the start of the new financial year, 1 July 2021 will see the Superannuation Guarantee (SG) rate increase from 9.5% to 10% and continue to increase annually until it reaches 12% on 1 July 2025.

The changes are the first step in a series of incremental changes that will see superannuation contributions rise over the next four years. The increases are as follows:

Income Year SG Rate
2021-22 10%
2022-23 10.5%
2023-24 11%
2024-25 11.5%

Employers will need to update their payroll settings to reflect the 0.5% increase in the SG rate, but importantly both employers and employees will need to consider the potential increased SG costs of these changes going forward.

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If you have any questions about how any of the above impacts your business, please contact a member of our Tax team.

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