A Quick Overview
The Superannuation Guarantee (SG) is scheduled to increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.
A Quick Overview
The Superannuation Guarantee (SG) is scheduled to increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.
What is changing?
The Superannuation Guarantee rate is increasing to 10% from 1 July 2021. It will continue to increase by half a percent each year until it reaches 12% on 1 July 2025.
What do you need to do?
Firstly, you should speak to your payroll software provider to make sure they are on top of this rate change. Your accountant or bookkeeper may also be able to help.
Review any individual agreements with an SG rate of more than 9.5%, but less than 10%.
Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
Update Remuneration Packages as it could mean a pay decrease for employees.
This is also a good opportunity to do some housekeeping to ensure your super obligations have been met (including super payments and calculations).
Why is this important?
As an employer, it’s important to ensure you pay super at the new minimum rate. There are financial penalties applied for not meeting your SG obligations.
The Superannuation Guarantee Charge (SGC) is the penalty charged when employers don’t pay :
the required super guarantee contributions for eligible employees,
super contributions by the payment cut off date or
super to each employee’s chosen super fund.
Got a question?
Get in touch with us if you need any help or have any questions.
Quantum Advisory is a business accounting and advisory firm that empowers family businesses to step up, scale-up and sell up. Visit qagroup.com.au or call 1300 700 711 and start the journey.
