Australians to get more super from next week

Mandatory employer superannuation contributions will increase to 9.5% as of 1 July.
 
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01.Super guarantee increases to 9.5%

Two hands cup a piggy bank

Next week, all Australians earning more than $450 in a calendar month will receive an increase in the super contributions made by their employer. 

From 1 July, the superannuation guarantee - the compulsory contributions made by your employer - will increase from 9.25% to 9.5%.

This means that super employer contributions for someone on an annual salary of $80,000, for example, will increase $200, from $7400 to $7600 each year.

The good news is that for those on a salary where super is paid on top of your base wage, the 0.5% super increase can’t be absorbed through a hit to your take home pay, but those on a salary package inclusive of super may not be so well protected.

For those on a package, their employer may make the mandatory super increase through reducing their take-home pay. 

The superannuation guarantee is set to gradually increase to 12%. This was set to happen by 2020, but the federal government has flagged that it will now be delayed until 2022.

Along with the incremental increases to super contributions, the concessional super contributions cap will increase from $25,000 to $30,000 - or to $35,000 for those 59 years and older.

This means that after taking your employer's mandatory contributions into account, additional amounts up to the value of $30,000 (or $35,000 for 59+ year olds) will be taxed at a marginal rate.

The Association of Superannuation Funds of Australia estimates that a couple retiring in NSW would need $2212 a fortnight, or around $60,000 a year for a comfortable lifestyle. Estimate how much money you’ll have in retirement with ASIC’s superannuation calculator

 

 
 

 

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