From 1 July 2021, the superannuation contribution rate will increase from 9.5% to 10% of ordinary time earnings (OTE).
All employers in Australia are required to meet this legislative change, even if you only have one or two employees.
The rate is also expected to progressively increase to 12% by 2025.
Depending on your workplace arrangements, you may wish to consider the following:
- Wages or salary inclusive of super
If you’re paying super that’s included as part of your employees’ wages or salary package, this may mean a reduction in their take home pay to reflect the additional 0.5% contribution to super. If so, you may wish to consider communicating this change to impacted employees as soon as possible.
- Industrial or Enterprise Bargaining Agreement (EBA)
If you’re paying a different or a higher rate due to an EBA, it could still be worthwhile to revisit contribution arrangements to consider any potential impacts caused by the increase.
Need more information?
The ATO website is a great resource for businesses to use, with all the latest rules and responsibilities for employers and superannuation.
For more information on employer super obligations, visit the Cbus website.
This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own business needs, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement and related documents to decide whether Cbus is right for you. Call 1300 361 784 or visit www.cbussuper.com.au for a copy.
Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262