Accounting, Taxation, Audit, Self Managed Super Funds, Goodwin Chivas & Co, Baulkham Hills, NSW, Australia
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March 2013 Newsletter-Increasing the Superannuation Guarantee Rate

Increasing the Superannuation Guarantee Rate

From 1 July 2013

This measure will significantly increase future retirement incomes for Australian workers through the gradual increase in the superannuation guarantee (SG) rate to 12 per cent.

The SG rate will be increased gradually with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019-20, when the SG rate will be set at 12 per cent.

The Government's approach to superannuation will achieve two main outcomes - greater adequacy and greater equity.

It is proposed that the changes will significantly increase the future retirement incomes for many Australian workers. For example, a 30 year old earning average full-time wages will have an additional $108,000 in retirement savings.

Employers will need to take increases in SG contributions into account when negotiating future wage agreements.

If any of your employees are on contracts containing a clause which provides that they receive a total remuneration package inclusive of superannuation, then you will need to review these carefully.

If you use MYOB as your payroll system each employee card will need to be edited to the new rate.

The monthly amount of $450 salary and wages has not increased.

For more information, please contact us.

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