An increase to the superannuation guarantee (SG) is set to go ahead from 1 July which will see the base rate rise from 9.5 per cent to 10 per cent, followed by incremental half percentage point increases each year to 12 per cent on 1 July 2025.
Employers should check their payroll software to ensure correct reporting from 1 July via Single Touch Payroll STP.
If your small business has employees, you’ll need to ensure your payroll software is updated to incorporate the increase to the super rate.
For salary and wage payments made on or after 1 July 2021, the new superannuation guarantee contribution rate of 10% will apply.
Super guarantee contributions for the quarter ending 30 June 2021 should be calculated at the old rate of 9.5%.
If you require help to work out how much super you need to pay your employees after 1 July, you can use this SG contributions calculator.
It’s important you pay your workers the correct amount of super. The ATO’s SG eligibility decision tool will help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes.
Employees who salary package will need to check if this increase tips them over the annual concessional contribution cap of $27,500 from 1 July.
