Implications of a Superannuation Rate Increase

The Superannuation Guarantee Rate is now 9.5%. (From 1 July 2014)

As an employer please ensure all systems have been adjusted to reflect this change.

As an employee and IF you are on a TEC - Total Employment Cost 'package', check that the increase from 9.25% to 9.5% won't decrease your take home pay.

That is, as Super increases the salary component reduces (in a simple example package of "TEC is $109,000", = $100K salary, $9K Super); but if super rises to 9.5% then the salary goes down to $99,544 and super rises to $9,456, total $109,000. It may not be much, but as Super is slated to rise to 12% over time, this is just the start.

Whilst many TEC employers may not enforce this type of change it would be prudent to check that automated pay systems don't automatically adjust your pay.

Brett Lamond
Updated 8 Dec 2015

[20130705, 20151208]
Last updated 8 Dec 2015