RateCity.com.au
powering smart financial decisions
RateCity.com.au

What is the superannuation guarantee?

What is the superannuation guarantee?

The superannuation guarantee rate is the minimum percentage of your salary that your employer must pay into your superannuation fund.

Even organisations that are exempt from income tax must pay the superannuation guarantee.

The superannuation guarantee has been set at 9.5 per cent since the 2014-15 financial year.

It is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

Employers are required to pay the superannuation guarantee at least once every three months, according to quarterly due dates. Those who fail to do so can be forced to pay the superannuation guarantee charge, which consists of:

  • The outstanding superannuation
  • 10 per cent interest
  • An administration fee ($20 per employee, per quarter)

Superannuation guarantee payments must be made through the SuperStream system.

Did you find this helpful? Why not share this article?

Advertisement

RateCity

Related articles