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% |
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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
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