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|
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.
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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