Did you know that Superannuation Guarantee contributions rate will increase from 9.5% to 10% on 1 July 2021?
Did you know Super guarantee rate rise 10% – SG rate is based on when employee is PAID and NOT Earned?
Did you know that It is also currently planned (although not completely certain) that the Superannuation Guarantee contributions rate will increase by 0.5% each financial year until the rate reaches 12% on 1 July 2025?
Did you know
- Where an employment contract states that (for example) total remuneration is $70K plus super, then legally the employee should get the extra half a percent super (without it impacting their $70K base salary). If the employer attempted to reduce the base salary to offset increased SG costs, the employee could claim the contract is broken and the employer could have an unfair dismissal case on their hands.
- However, if an employment contract says the total remuneration package is $70K including super then this will generally provide the employer with authority (if they choose) to effectively decrease an employee’s base salary to meet the SG increase.
- There may be instances where employers try to amend employment contracts to have SG included in total remuneration – rather than base pay plus super — but this would need to be agreed to with the employee.
Computer based pay-roll systems should make the correct calculations automatically. Digital Service Providers, that produce pay-roll software will have been contacted by the ATO and software should be compliant with the change.
If your pay-roll system is not a computer based software package, you will need to make the calculations yourself.
Did you also know that only Registered Tax Agent like us can provide Payroll Services?
This is because, withholding the correct amount of tax is employer’s obligation.
We are here to assist and ensure you discharge your statutory obligation as a responsible employer.
We take reasonable care in ascertaining our client’s state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement we are making or a thing we are doing on behalf of our client.