The Superannuation Guarantee (SG) is scheduled to rise to 10% from 1 July 2021. It’s then due to rise incrementally by 0.5% each financial year until it reaches 12% by 1 July 2025.
Initially scheduled to take place on 1 July 2015, the SG increase to 10% was initially delayed by the government to help ease the financial burden on small business at the time. The government’s policy was to delay the increase by two years, but then this was eventually extended to begin on 1 July 2021.
Will the increase be mandatory?
Currently, the SG increase is mandatory, but the government is considering whether to offer it on an opt in basis. Treasurer Josh Frydenberg believes the recession caused by the coronavirus means the government should rethink its position on the policy.
After the release of the Retirement Income Review in November, Mr Frydenberg said the government will consider the report and other views to reach a decision before July.