Is your business ready for the super guarantee rate rise?

On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate.

If you need help to work out how much super you need to pay for your employees after 1 July, you can use the ATO’s super guarantee contributions calculator (first link below).

It’s important you pay your workers the correct amount of super. The ATO’s superannuation guarantee eligibility decision tool (second link below) will help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes.

The super rate is scheduled to progressively increase to 12% by July 2025. You can find the scheduled rate increases and dates on the ATO website.

The links:

1.     https://www.ato.gov.au/Calculators-and-tools/Super-guarantee-contributions/

2.     https://www.ato.gov.au/Calculators-and-tools/Super-guarantee-eligibility/

Harper Group Pty Ltd – Chartered Accountants Frankston - Ph 9770 1547 

Disclaimer: All information provided in this article is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.

Please note we at Harper Group Pty Ltd are not licensed to provide financial product advice under the Corporations Act 2001 (Cth) and taxation is only one of the matters that must be considered when making a decision on a financial product, including on whether to make superannuation contributions. You should consider taking advice from the holder of an Australian financial services licence before making a decision on a financial product.