Mandated employer contributions

Technical resource

Mandated employer contributions are contributions by, or on behalf of an employer that are equal to the contributions made in relation to the member.

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:

  • reduce the employer’s potential liability to the Superannuation Guarantee (SG) Charge
  • are payments of the SG shortfall components
  • are contributions to satisfy the employer’s obligation to make contributions under an award or agreement certified by an industrial authority (often referred to as award contributions).

Since 1 July 2013, employers are now liable to pay SG for all eligible employees.

These provisions are contained in Superannuation Industry (Supervised) Regulation 5.01(1).

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%

Next: Work test exemption for recent retirees aged 65 to 74

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FOR ADVISER USE ONLY

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