The Superannuation Percentage relating to the level of contributions that an employer is required to pay an employee is gradually increasing from 9% to 12% between 1 July 2012 and 30 June 2026.
This compulsory contribution made by employers is known as the Superannuation Guarantee.
Why is the Superannuation Percentage increasing?
It is increasing because the Government has recognised that individuals need to put greater savings aside in order to fund more (if not all) of their retirement.
By increasing the mandatory superannuation contributions, it is expected that more people will be able to fully or partially fund their own retirement.
Many people believe the increase in the Superannuation Percentage will have a significant impact on businesses, as their employees’ total salary package will cost more.
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I’m not sure that this is the case. It is more likely that an employees’ ‘take home pay’ will be reduced in order to cater for the increased superannuation contributions.
What is the Superannuation Percentage amount?
The table below details the Superannuation Guarantee Percentage (%)
|Period||Superannuation Guarantee Rate (Percentage %)|
|1 July 2003 – 30 June 2013||9%|
|1 July 2013 – 30 June 2014||9.25%|
|1 July 2014 – 30 June 2015||9.5%|
|1 July 2015 – 30 June 2016||10%|
|1 July 2016 – 30 June 2017||10.5%|
|1 July 2017 – 30 June 2018||11%|
|1 July 2018 – 30 June 2019||11.5%|
|1 July 2019 – 30 June 2020 and onwards||12%|
When do Superannuation Guarantee Payments need to be made?
These payments need to be made on at least a quarterly basis.
|1||1 July – 30 September|
|2||1 October – 31 December|
|3||1 January – 31 March|
|4||1 April – 30 June|
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