With last week’s passing of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014, employers’ compulsory superannuation contributions will not rise again until 2021.
The Superannuation Guarantee Charge (SGC) as of 1 July 2014 was set at 9.5% of employee earnings, where it will remain until 2021.
On 1 July each year beginning in 2021, the SGC will rise by 0.5%, eventually reaching 12% by 1 July 2025.
Under Labor’s original legislation, compulsory employer contributions were set to reach 12% by 1 July 2019, so the recent legislative change represents a six-year delay.
For more information about the Bill, click here.
