Did you know that from 1 July 2021, the rate for the superannuation guarantee is scheduled to increase to 10%?
Whilst we are waiting for the Federal Government to provide further information regarding its commitment to the increase, it is expected that the Treasurer Joh Frydenberg will do so in the handing down of the Federal Budget in May. MBA ACT will provide further information to its members as soon as it is available.
As an employer, it is important that you prepare to implement this change from 1 July 2021. This means ensuring that you have mechanisms in place so that your payroll system calculates the correct amount payable to your employees but that you also have the funds available to make the contributions when they fall due (either monthly depending on the employee’s super fund or at least quarterly if not specified).
The superannuation guarantee is payable on ordinary time earnings which includes:
Click here to view the ATO checklist as to what constitutes ordinary time earnings.
If you have an enterprise agreement, it is prudent to check whether the superannuation guarantee amount is the same or a greater amount than the superannuation guarantee amount. You should pay the correct amount to your employees in accordance with your enterprise agreement or the superannuation guarantee.
For further information about the superannuation guarantee percentage increases and when they are scheduled to occur, click here.