We see much discussion in business circles around the proposed increase to the Superannuation Guarantee paid by employers for employee super.
The Superannuation Guarantee rate has been kept at 9.5% of an employee’s ordinary wages since July 2014. However, from 1st July 2021, it is due to gradually increase (by 0.5% each financial year) until it finally reaches 12% in July 2025.
Consequently, the superannuation guarantee rate is currently due to increase to 10% from 1 July 2021.
Scott Morrison has indicated on Friday 8th September 2020, that delaying the legislated increases in employer SG contributions from 9.5 percent to 12 percent by 2025 was something the government should “carefully consider.”
Paul Keating and Kevin Rudd have, however, accuse the Federal Government of using the COVID-19 crisis to “destroy the superannuation system.”
We will keep you updated on the progress of this issue.