Superannuation Guarantee now 10% for payments made after 1 July 2021

What?

Superannuation Guarantee has increased from 9.5% to 10%.

When?

For all salary and wages paid after 1 July 2021.

What happens if the work was done before 1 July? Can I pay the lower rate for work that was performed before 1 July??

No. The 10% rate applies for all payments made after 1 July, even if the work was done before this date.

Give me an example.

Sure. If a fortnightly pay period started on 24 June 2021 and ends 7 July 2021, if the employee is paid (say $4,500) on 8 July 2021, the ATO says the minimum SG contribution for that pay period is 10%, i.e. $4,500 x 10% = $450.

What do I need to do?

Make sure that if you are processing payroll manually, that you are now paying superannuation at 10%. If you are using a software provider, make sure that the software is calculating superannuation at 10%

Need help?

Please call us, we are only too willing to assist.

Need more information?

Try this – https://www.ato.gov.au/Newsroom/smallbusiness/Employers/How-much-super-do-you-need-to-pay-/