Super Guarantee Rate Increased
The superannuation guarantee rate (currently at 9.5%) will increase to 10% from 1 July 2021, as part of the already legislated plan to increase it to 12% over the coming years as follows:
Further on Super Guarantee, in the Federal Budget, the Government also abolished the exemption for low-income earners.
The Superannuation Guarantee $450 per month eligibility threshold will be removed from 1 July 2022.
As a result, employers will be required to make quarterly SG contributions on behalf of such low-income employees earning less than $450 per month (unless another Super Guarantee exemption applies).
These other exemptions include:
· people you pay to do work of a domestic or private nature for less than 30 hours per week
· non-resident employees you pay for work they do outside Australia
· some foreign executives who hold certain visas or entry permits
· members of the army, naval or air force reserve for work carried out in that role employees who opt out of receiving super if you're
· covered by an SG employer shortfall exemption certificate in relation to the employee for the quarter
· Employees temporarily working in Australia who are covered by a bilateral super agreement – you must keep a copy of the employee's certificate of coverage to verify the exemption.