New super guarantee rate now applies

The ATO is urging all employers to ensure they have implemented the Superannuation Guarantee (SG) rate rise which increased to 9.5 per cent on 1 July 2014.

Stephanie Zillman
Stephanie Zillman
Locked · 7 July 2014 · 2 min read
lead photograph — full bleed
Above New super guarantee rate now applies. Dynamic Business

The ATO is urging all employers to ensure they have implemented the Superannuation Guarantee (SG) rate rise which increased to 9.5 per cent on 1 July 2014.

Employers must now increase the compulsory super contributions they make on behalf of their employees from 9.25 per cent to 9.5 per cent.

Some employers may be confused about the increase, following pre-election promises from the Federal Government that the rise would be deferred.

The Federal Government couldn’t the pass legislation through the Senate in time to freeze the SG at 9.25 per cent, resulting in the previous government’s legislation of a SG rise to 9.5 per cent legally binding.

Subsequently, the rate will remain at 9.5 per cent until 30 June 2018 and then increase by 0.5 percentage points each year until it reaches 12 per cent.

Employers can ensure they meet their obligations by accurately calculating super guarantee for pay periods that cross over 1 July and apply the rate rise to salary and wage payments after 30 June.

“Super contributions are calculated on the date you pay your employees. If this date was on 1 July or after, then you will need to use the new super guarantee rate,” Emma Haines, ATO Assistant Commissioner said.

“Employers can use the ATO’s online superannuation guarantee contributions calculator to work out how much super they must contribute for eligible workers.”

Small businesses are encouraged to use the ATO’s free Small Business Superannuation Clearing House service to help meet their super guarantee obligations. The Small Business Superannuation Clearing House lets you pay your superannuation contributions in one transaction, to a single location; helping to make the process easier.

“If you have 19 employees or fewer, you can use this free service to pay your super contributions in one transaction,” Ms Haines said.

For more information about super guarantee visit www.ato.gov.au/employersuper or seek help from your superannuation service provider.

SZ
Stephanie Zillman
From the floor
Closer to this story than we are?
If you're building in this space — or watching it reshape your market — pitch us. We edit it; you get the byline.
More from the desk

Keep reading.

News ◆

The new phishing trick aimed at the AI reading your inbox

Hidden text invisible to you but readable by AI is showing up in phishing emails, layered on top of scams the ACSC already tracks.

Yajush Gupta · 2 min
News ◆

The trade-off behind September’s SMB hiring rebound

“Nobody wants to let good people go,” says James Keene of Employment Hero, as new data shows SMBs trading pay rises for job security.

Yajush Gupta · 2 min
News ◆

How to cyber-proof your small business without a big budget

Most businesses think they’re audit-ready. Kaseya’s 2026 report, featuring David Baggett, suggests that confidence may not hold up.

Yajush Gupta · 2 min
0 people like this

Comments

Loading comments…