The steady climb in the Super Guarantee (SG) rate requires employees to contribute more money into their employees’ superannuation fund.
The SG rate has already increased to 9.25 per cent as of July 2013. The next increase to 9.5 per cent will come into play in July 2014. It is scheduled to increase further over the next coming years, eventually reaching the 12 per cent target.
It is also important that businesses are aware that the upper age limit for paying the SG rate for an employee was removed this year. This is to allow mature age workers to build up their retirement savings for a longer period of time.
The removal of the upper age limit means that employers must continue to pay eligible employees super if they are over 70 and continue to be employed by the business.