The superannuation guarantee will increase from 9.5% to 10% on 1 July 2021. It will then increase by 0.5% each year until it reaches 12% by 1 July 2025.
From 1 July 2021, members should adjust their payroll systems to make the increased minimum contributions to employees and to some contractors. A failure to make the increased payment means the business would be liable to pay the higher superannuation guarantee charge (including interest and an administration fee), in addition to penalties.
Members should examine employment contracts, particularly for non-award employees, to see whether the extra-statutory superannuation must be paid in addition to remuneration or whether it can be absorbed into the remuneration package.
For advice on these issues call a NatRoad adviser on 1800 272 144.