Increase in Superannuation Rate

27 JUN 2022

 

From 1 July 2022, the superannuation guarantee rate will increase from 10% to 10.5%.

In 2021, the Federal Government passed legislation to have the superannuation guarantee rate increase by 0.5% increments until it reaches to 12% in July 2025.

 

The Impact on Employers

The change in the superannuation rate will impact the amount of super that employers will have to pay their employees.

If you are an employer, you should ensure that you:

  1. review your employees’ employment contracts to ensure you are aware of which of your employees are entitled to be paid superannuation; and
  1. review and update your payroll system to ensure that the increased superannuation rate is reflected in your employees’ pay.

It would also be prudent to advise your employees of this change and remind them to regularly check their superannuation accounts and balances.

 

How Can Marsdens Help You?

Employers who do not pay the correct super to their employees may have significant penalties imposed upon them. It is important to be aware of your obligations and implement measures to ensure those obligations are fulfilled.

If you are an employer and are unsure about your obligations to pay superannuation to your employees, please contact Aaran Johnson or Simon Kumar to discuss how we can assist you.

 

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.

 

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