Superannuation Increases

 

In 2012 the Federal Government announced an increase in the compulsory superannuation contributions, with this legislation to take effect from 1 July 2013.

Thus, from 1 July this year, the super guarantee rate is going up.  The rate will increase gradually over the next 7 years from 9% to 12% by 2019.

If you are making super payments to employees at the current 9% super guarantee, you will need to adjust the payment to the new rate from 1 July this year.

The following table shows the increased rate for superannuation over the next 7 years to 2019:

1 July 2013 – 9.25%
1 July 2014 – 9.50%
1 July 2015 – 10%
1 July 2016 – 10.5%
1 July 2017 – 11%
1 July 2018 – 11.5%
1 July 2019 – 12%

What you need to do…

You are required to increase contributions for employees from 9% to 9.25% from 1 July this year and also to comply with further increases each year.  Generally speaking you cannot off-set employees’ salary or hourly rate to cover the additional costs to the business.

Without planning and budgeting, these changes can have a significant impact on your businesses. Being prepared for these changes will ensure you avoid non-compliance and possible fines.

More information can be obtained from:  www.superfuture.gov.au/employers

 

If you would like more information, please visit our Contact Us page, email us at info@evansfaull.com.au, or call our office on (03) 9023 4736.

Evans Faull HR | HR Consulting & Recruitment | Melbourne

No comments yet.

Leave a Reply