On 1 July, the minimum superannuation guarantee contribution rate for employees under the Superannuation Guarantee (Administration) Act 1992 was increased from 9.5% to 10%.
This will continue to rise incrementally each year until 1 July 2025, when the minimum contribution will be 12%.
However, the change will impact employees differently. Employees whose salary is stated to be inclusive of superannuation could find their net pay reduced to incorporate the changes to the superannuation contribution rate. However, for employees whose salary or wages are stated to be exclusive of superannuation, the employer will need to fund the additional payments to superannuation and increase the total remuneration package paid to employees.
For questions regarding your obligations to employees, please contact Heather Richardson.