Australia: Superannuation is Scheduled to Increase

June 28, 2021
1 min read
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The superannuation guarantee is the percentage an employer pays into an employer’s super fund, with the rate in Australia currently set at 9.5%. This will increase to 10% as of 1 July 2021. Further increases of 0.5% per year will follow from 1 July 2022 until it reaches 12% in July 2025.

Due to the increase, the maximum super contribution base will rise to AUD 235,680 per year. The opt-out income threshold will also increase to AUD 275,000, allowing high-income earners with multiple jobs to opt-out of the scheme, so their employer doesn’t reach the concessional contributions cap.

From 1 July, the annual concessional contributions cap is also increasing to AUD 27,500. Any contributions made beyond this amount may attract a higher tax rate and an excess contributions charge.

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