Superannuation guarantee increase to 10.5%
The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches 12% on 1 July 2025.
If you have employees, what this will mean depends on your employment agreements. If the employment agreement states the employee is paid on a 'total remuneration' basis (base plus SG and any other allowances), then their take home pay might be reduced by 0.5%. That is, a greater percentage of their total remuneration will be directed to their superannuation fund. For employees paid a rate plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their SG payments.
Related Insights
What the Proposed Negative Gearing Changes Could Mean for Property Investors
What the Proposed Negative Gearing Changes Could Mean for Property Investors
The Federal Budget proposes major changes to negative gearing. Understand who may be affected and what it could mean for future property investors.
Understanding the Proposed Trust Tax Changes
Understanding the Proposed Trust Tax Changes
The Federal Budget proposes changes to trust taxation. Understand who may be affected and the key considerations for trustees and families.
Preparing for the Proposed Capital Gains Tax Changes
Preparing for the Proposed Capital Gains Tax Changes
The Federal Budget proposes major CGT reforms. Understand the proposed changes and what they could mean for investors and asset owners.
We are here for you
We look forward to working with you to help you achieve a better financial future. Let us guide you on the path to financial success.
Contact your preferred Murray Nankivell office today.
