Long legislated, the superannuation guarantee rate was set to rise by 0.5% to 10% on 1 July 2021, with continued rises of 0.5% each year until 12% SG was reached in 2025.
Although the increases have been legislated, there are now doubts that the initial rise will still go ahead on 1 July 2021 with Treasurer Josh Frydenberg recently indicating it may be delayed.
The Retirement Income Review released findings that suggest the working income could fall by 2% if the SG rate rise to 12% goes ahead, citing the increased cost to employers in the current economic situation caused by the COVID-19 pandemic.
A decision by the government is currently expected before the scheduled 1 July increase as they consider the observations made in the report.
We encourage our customers to still be prepared
for a potential SG increase and to subscribe to our customer newsletter
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