Australia’s superannuation guarantee increases to 10% in July 2021

Australia’s superannuation guarantee increases to 10% from July 1, 2021, and increases by 0.5% each year until it hits 12% by 2025. This increase is already legislated and there have been no changes to it according to the federal government budget announced last week. There was a lot of commentary in the Australian media from different stakeholders in the lead-up to the federal budget on how a mandatory increase to superannuation guarantee would mean less wage growth, fewer investments, and so forth in Australia. However, the budget did not make any changes to the slated increase and as such, Australia will go ahead with the increase.

More information

• Australian Taxation Office (outlines percentage amounts and relevant periods)
• Recent superannuation announcements in the federal budget (includes increase in super guarantee)

 

This information is provided by CA Financial, Asinta’s employee benefits consulting Partner in Australia.