As most employers will know, the superannuation contribution rate is due to increase from 1 July 2021 from 9.5% to 10%. In addition to this increase, last week the Treasury Laws Amendment ('Your Future, Your Super') Bill 2021 (the "Bill") passed which will make a number of changes to current legislation, which will have an impact on how contributions to employee super funds are managed.
Reviewing salary arrangements
From 1 July 2021, the superannuation contribution rate will increase to 10%, which marks the first increase since 2013. According to the legislative schedule, this will progressively increase by 0.5% until July 2025 where the rate will reach 12%.
The increases to the superannuation contribution rate mark an important time for employers to review and, if appropriate, update their remuneration arrangements. For many employers, the increase to the superannuation contribution rate will mean a resultant increase in the overall remuneration paid to employees.
