The Superannuation Guarantee (Administration) Amendment Act 2012 increases the Superannuation Guarantee charge payable by employers from 9 percent to 12 percent of an employee’s ordinary time earnings (up to a prescribed maximum) over the next 6 years.
The first Superannuation Guarantee charge percentage increase is from 9% to 9.25% on 1 July 2013.
Subsequent increases are: 9.5% on 1 July 2014, 10% on 1 July 2015, 10.5% on 1 July 2016, 11% on 1 July 2017 and 11.5% on 1 July 2018. On 1 July 2019 the rate will be set at 12 per cent for 2019-20 and subsequent income years.
The maximum age limit of an employee at which the superannuation guarantee no longer needs to be provided is also abolished. Currently employers are required to contribute to complying superannuation funds of eligible mature age employees aged 70 and older.The SG maximum age limit of 70 has been removed and employers are required to contribute to complying superannuation funds of eligible mature age employees aged 70 and older.
