Superannuation Increase 2021

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Is the Super Guarantee rate really set to rise?

Increases to the Super Guarantee have been slated for a number of years, with the long-term goal to increase the rate to 12% however a number of economic factors have led this increase to be frozen at 9.5% since 2014.

At this stage, the next increase, to 10% has been scheduled for 1 July 2021 but has not been officially committed to, with the Federal government stating that the final decision will be made in the May 2021 budget. The impact of the Covid-19 pandemic likely to be the major contributing factor.

What do you need to consider?

Start thinking about the impact to your wages budget. Have you already taken this increase into account when setting you FY 21 / 22 budget? What impact will it have on wage increases and remuneration reviews for your business?

Think carefully about how your employment contracts are worded. Do they stipulate a base amount plus super? Or are they inclusive of Super?

If inclusive of Super, how are you going to manage the increase and what effect will this have on your people?

What do you need to do now?

For now, as we wait, we still need to be prepared. Talk through the changes with your accountant and Infinity HR. Be ready to action the changes on 1 July 2021.

At Infinity HR, we work with small business to ensure compliance and effective business operation. If you require further information on increases to super guarantee or need assistance with wage increases and remuneration reviews contact Iolanda at 0400 489 743 or email info@infinityhr.com.au today.