Will the compulsory increase to super go ahead? Posted on February 19, 2021
At this stage, yes. But an announcement of a different kind would not be a surprise to the business community given recent economic pressures.
The government has indicated that its priority is to create jobs and protect businesses.
Superannuation contributions from employers are currently legislated to increase in small increments up to 12% in 2025. This July, contributions are due to increase to 10%:
| Period | General super guarantee (per cent) |
| July 1, 2002 – June 30, 2013 | 9 |
| July 1, 2013 – June 30, 2014 | 9.25 |
| July 1, 2014 – June 30, 2021 | 9.5 |
| July 1, 2021 – June 30, 2022 | 10 |
| July 1, 2022 – June 30, 2023 | 10.5 |
| July 1, 2023 – June 30, 2024 | 11 |
| July 1, 2024 – June 30, 2025 | 11.5 |
| July 1, 2025 – June 30, 2026 | 12 |
In 2020, 3 million Australians removed $36billion from their superannuation accounts through the early release scheme. While some of these funds were for emergency purposes, some reports suggest that funds were used for discretionary purposes.
Chartered Accountants ANZ has called for further protection of the superannuation system and an improved economic position before businesses are required to make further compulsory contributions during this period of economic uncertainty.
