Tuesday, 28 October 2014

A Welcome Relief for Business: Superannuation Frozen at 9.5% until 1 July 2021

The minimum statutory Superannuation Guarantee contribution increased to 9.5% on 1 July 2014 and was due to increase to 10% on 1 July 2015. However, new legislation passed by the Federal Parliament will now see the minimum contribution remain at 9.5% until 1 July 2021.

A timetable of the changes are summarised below.

Financial Year Superannuation Guarantee
2014/15 9.5%
2015/16 9.5%
2016/17 9.5%
2017/18 9.5%
2018/19 9.5%
2019/20 9.5%
2020/21 9.5%
2021/22 10%
2022/23 10.5%
2023/24 11%
2024/25 11.5%
From 1 July 2025 12%

What you need to know

Employers are reminded the Superannuation Guarantee is calculated against Ordinary Time Earnings and should be paid at least every quarter to avoid the imposition of the Superannuation Guarantee Charge which consists of the shortfall in super, the interest on the shortfall plus an administrative charge. Further penalties could also be imposed depending on the circumstances and at the ATO’s discretion. Directors may also be held personally liable for penalties equal to any unpaid amount.

If you are uncertain of your obligations and options, or seek assistance with your agreements, do not hesitate to contact HR Legal.

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This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.

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