{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety documents Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Changes to superannuation

The amount of superannuation that all employers are required to pay has been increasing each year. Make sure you are paying your employees the correct rates and factor in future increases.

Key facts

  • Australia’s compulsory superannuation system requires employers to pay a percentage of an employee’s earnings into their superannuation account.
  • Each year until 2025, the amount of superannuation that must be paid to eligible employees will increase by 0.5 percent. Depending on your arrangements with your employees there are different ways that this increase can be accounted for.
  • Employers should communicate the change to the superannuation amount including any impact this will have on an employee’s take home pay as soon as possible. 
  • On 1 July 2022, the income threshold for payment of superannuation contributions was removed. This means that employees who earn less than $450 per month (and satisfy a range of other criteria) are now entitled to superannuation.

Superannuation amount to increase

The following table provides the past and future superannuation amount increases.

Financial Year

Super Guarantee Rate

1 July 2002 – 30 June 2013

9%

1 July 2013 – 30 June 2014

9.25%

1 July 2014 – 30 June 2021

9.5%

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 and onwards

12%

What does this mean for me as an employer? 

Employers should regularly review their wages arrangements with their employees to ensure that the correct superannuation guarantee contribution has been paid.

As these arrangements may impact how businesses budget for and pay your employees superannuation, it is important to consider the following scenarios.

Scenario 1:  Employee's salary includes super (the employee has a “Total Remuneration Package” (TRP)

Option 1

Employer may elect to take the additional 0.5 percent super from an employees salary as the employee is paid on a total package amount.

The employee will receive a reduced take home pay, however their TRP will not be impacted.

Option 2

Alternatively, the employer may elect to increase the employees TRP to account for the additional 0.5 percent super.

Scenario 2: Employee has a “Salary + Super” contract 

The employer is required to pay the additional 0.5 percent super for each employee.

The employer will pay more; however employees will not face any changes to their take home pay.

We strongly recommend that employers communicate these changes with their employees as soon as possible and prior to 1 July each year. 

Income threshold 

The entitlement to super payments depends on an employee meeting a number of criteria. This may include their employment status, age, weekly work hours, and income.

On 1 July 2022, the $450 per month income threshold was scrapped, meaning that employees earning less than $450 per month may be entitled to super.

We recommend the use of the ATO Super Guarantee Eligibility tool if you are unsure as to whether you are obligated to make super contributions to your employees.

Penalties

Employers who fail to pay the minimum amount of super guarantee to their eligible employees by the due date may receive a super guarantee charge (SGC).  The SGC is made up of:

  • The amount of super owed to the employee; 
  • Interest (currently 10 percent); and 
  • Administration fee ($20 per employee, per quarter).

The ATO can take stronger action if an employer does not pay the SGC including court imposed fines, orders to pay up to 200 percent of the SGC amount, imprisonment or Director Penalty Notices to recover the unpaid SGC from Director’s personal assets. 

Find out more from ATO's website.

To find out more, contact HIA's Contracts and Compliance team

Email us

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!

Managing your business


 

Can’t find what you need, check out other resources that might be closer to the mark.

Explore resources

Business support


 

Supporting building professionals with custom built services and products.

  • Contracts and compliance support
  • Contracts Online
  • Host an apprentice
  • Insurance Services
  • Savings for members and much more!

Explore Business support

Become a HIA member today

Join Australia’s largest residential building association to gain access to a huge range of industry products and business services. We can help you manage, operate and grow your business.

HIA National & State Outlook Report

A comprehensive, up-to-date, and easy to follow quarterly forecast of home building and renovation activity.

HIA-Colorbond® steel Housing 100

Review the latest activities, market share and statistics of Australia’s largest homebuilders and residential developers.

New home sales report

Understand the current new home sales and construction activity each month.

HIA–CoreLogic Residential Land Report

Understand land prices, land sale volumes, and residential lot sizes on a capital city and non-metropolitan basis – right down to a statistical district level.

HIA Population and Residential Building Hotspots Report

Understand where the nation’s population growth and building hotspots are, so you can confidently plan for your future projects.

HIA Stamp Duty Watch

Understand the latest developments in stamp duty on home purchases.

Trades Report

Understand the availability of skilled trades and the costs associated on both a national and state level.

HIA Affordability Report

Understand the financial indicators impacting the affordability of homes in Australia.