REMINDER: Superannuation contribution to increase to 10% on 1 July 2021

Beginning Thursday, 1 July 2021, the compulsory superannuation contribution rate will be increased from 9.5% to 10%.

This is despite some Federal Members of Parliament having unsuccessfully attempted to delay the scheduled increases to 12% by 2025.

With this impending increase, it is worthwhile remembering that the percentage employers are required to apply is determined based on when the employee is paid, not when the income is earnt.

The rate of 10% will need to be applied for all salary and wages that are paid on and after 1 July 2021, even if some or all of the pay period it relates to is before 1 July 2021.

For example:

• If work was done in June (or partly in June and partly in July) but employees were paid in July, the rate is 10% and contributions totalling 10% of the employee’s ordinary time earnings for the September 2021 quarter must be made to the employee’s superannuation fund by 28 October 2021.
  
  

• If the work was done in July but employees were paid in advance (before 1 July), the rate is 9.5% and contributions totalling 9.5% of the employee’s ordinary time earnings for the June 2021 quarter must be made to the employee’s superannuation fund by 28 July 2021.

For any further information/clarification, please contact the ACA NSW office on 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 22 JUNE 2021