In the 2020-21 Federal Budget, the Government made a number of changes to employee superannuation. One of those changes is an increase in the Super Guarantee Contributions employers will need to pay each employee.
While not yet confirmed, the increase is scheduled to commence on 1 July this year and will be a 0.5% increase. The Federal Government has not yet officially committed to this increase with the Treasurer, Josh Frydenberg stating a final decision will be made in the May 2021 Budget.
Nonetheless, it’s best to plan for each employee’s Super Guarantee Contribution to increase to 10% from 1 July.
For some business owners, this may mean adjusting staffing levels, reducing employee hours or reviewing current expenses in order to cover this additional cost. We can’t help you with budgeting. But if you anticipate having difficult conversations with staff or need some help in determining staffing levels, we can provide guidance on how to proceed.
To investigate the ways we can assist you, contact End2End Business Solutions on 02 8977 4002.