For Advisers only
An employer may be required to make mandated employer contributions for the benefit of eligible employees. Mandated employer contributions are contributions by, or on behalf of an employer that are equal to the contributions made in relation to the member that:
Since 1 July 2013, employers are now liable to pay SG for all eligible employees. There are some employees that are excluded from this definition (non-exhaustive):
These provisions are contained in the Superannuation Industry (Supervision) Regulations 1994 - Reg 5.01(1).
Generally, employers are only required to pay SG on an employee’s ordinary time earnings up to the ‘maximum contribution base’. For the 2020/21 financial year this is $57,090 per quarter.
Increases to the Super Guarantee
The SG rate is increasing progressively from 9.5% to 12% by 2025. The incremental increases are outlined in the table below.
|Period||SG rate (Charge %)|
|1 July 2014 - 30 June 2021||9.5%|
|1 July 2021 - 30 June 2022||10%|
|1 July 2022 - 30 June 2023||10.5%|
|1 July 2023 - 30 June 2024||11%|
|1 July 2024 - 30 June 2025||11.5%|
|1 July 2025 - onwards||12%|
FOR ADVISER USE ONLY
This publication is current as at 01 July 2020 and has been prepared by BT Financial Group , a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (“BTFG”), which is part of the Westpac group of companies (Westpac Group). This document has been prepared for the information of financial advisers only and must not be copied, used, reproduced or otherwise distributed or made available to any retail client or third party, or attributed to BTFG or any other company in the Westpac Group. The information contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. This publication has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this publication, consider its appropriateness to your clients, having regard to their objectives, financial situation or needs. Any taxation information contained in this publication is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual client’s situation may differ, and your clients should seek independent professional taxation advice on any taxation matters. Any graph, case study or example contained in this publication is for illustrative purposes only, and is not to be construed as an indication or prediction of future performance or results. While the information contained in this publication may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of BTFG or any member of the Westpac Group that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and (b) no member of the Westpac Group is in any way liable to you (including for negligence) in respect of any reliance upon such information.
This website may also contain links to websites operated by third parties ("Third Parties") who are not related to the Westpac Group ("Third Party Web Sites"). These links are provided for convenience only and do not represent any endorsement or approval by the Westpac Group of those Third Parties or the information, products or services displayed or offered on the Third Party Web Site.