The future Superannuation Guarantee (SG) was clarified in the recent Federal Budget with some much-needed clarity on the SG rate that will apply from 1 July 2014. The SG rate will increase to 9.5% on amounts earned from 1 July 2014.
The Government had planned to pause the rate at the current 9.25%; however this plan has been scrapped. The new 9.5% rate will continue to apply until 30 June 2018, after which it will increase to 10% and then incrementally to 12% by 1 July 2022.