From 1 July 2021, the compulsory superannuation guarantee rate will increase from 9.5% to 10.0%
The superannuation guarantee is a compulsory system of superannuation support for Australian employees, paid for by employers. Employers will have to pay more funds to pay millions of Australians higher superannuation under new changes announced by the federal government.
It came into full effect in Australia in 1992 and has since gradually increased from 9.0% of employee’s ordinary time earnings to its current 9.5%. On 1 July 2021, the Super guarantee will rise to 10.0%, reaching 12.0% by 1 July 2027. Below is the summary of future changes:
| Financial Year | Super Guarantee Rate |
| 1 July 2014 – 30 June 2021 | 9.5% |
| 1 July 2021 – 30 June 2022 | 10% |
| 1 July 2022 – 30 July 2023 | 10.5% |
| 1 July 2023 – 30 June 2024 | 11.0% |
| 1 July 2024 – 30 June 2025 | 11.5% |
| 1 July 2025 – 30 June 2026 and onwards | 12.0% |
What are some other proposed superannuation changes that will take effect from 1 July 2021…?
- Removal of $450 monthly income threshold for super contributions.
- Increase in the withdrawal limit for First Home Super Saver Scheme (FHSSS).
- Removal of super contribution ‘work test’ for those aged between 67 and 74.
- Transfer of unclaimed super to KiwiSaver accounts.
- Lower age threshold for super downsizer theme.
- Visibility of super assets in divorce settlements.
For more questions about the Superannuation changes or detailed information about the changes, you can visit the Australian Taxation Office website.
Source: ABC News, Australian Super
