News
$450 monthly superannuation guarantee threshold scrapped in 2021 budget
This means employers will need to make superannuation guarantee payments for more employees from next year.
In response to concerns that women retire with less superannuation than men, the Budget has removed the $450 per month threshold for superannuation eligibility, therefore employees who earn less than $450 per month will, from next year be paid superannuation.
According to the government’s Retirement Income Review, around 300,000 employees would benefit from removing this monthly threshold, with 63% of those employees women.
The Government plans to introduce legislation to make this change by July 1, 2022, and it would come into effect at the start of the first financial year after the legislation is passed by Parliament.
The superannuation guarantee is currently set at 9.5%, but in the coming years, superannuation rates are set to increase as follows:
1 July 2021 – 30 June 2022 = 10%
1 July 2022 – 30 June 2023 = 10.5%
1 July 2023 – 30 June 2024 = 11%
1 July 2024 – 30 June 2025 = 11.5%
1 July 2025 – 30 June 2026 = 12%
Employers should budget for these increases, which may coincide with wage increases. The existing eligibility requirements for superannuation payments to employees still apply.
Date published 14 May 2021
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