{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan HR Docs Trusted legal support Legal advice and guidance Professional services 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 and products Concrete, bricks and 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 Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course Get your builder's licence Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Australian Housing Awards Awards program National Conference Industry networking Events Building and Renovation Home Show HOMEFEST
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions Products Building codes and standards Hard copy contracts Guides and manuals Safety and signage See all
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Changes to superannuation

From 1 July 2021, all employers will be required to pay the increased mandatory superannuation guarantee contribution (SGC) of 10% to all eligible employees.

Key fact

  • Australia’s compulsory superannuation system requires employers to pay a percentage of an employee’s earnings into their superannuation account.
  • From 1 July 2021, the amount of superannuation that must be paid will increase to 10 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 employees take home pay as soon as possible. 
  • From 1 July 2022, the current income threshold above which superannuation contributions must be made will be removed. This means that employees who earn less than $450 per month (and satisfy a range of other criteria) will be entitled to superannuation.

Superannuation amount to increase

From 1 July 2021, employers will be required to increase superannuation contributions to 10 percent.  

This will continue to increase up to 12 percent by 2025.  

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

Financial Year

Super Guarantee Rate

1 July 2002 – 30 June 2013


1 July 2013 – 30 June 2014


1 July 2014 – 30 June 2021


1 July 2021 – 30 June 2022


1 July 2022 – 30 June 2023


1 July 2023 – 30 June 2024


1 July 2024 – 30 June 2025


1 July 2025 – 30 June 2026 and onwards


What does this mean for me as an Employer? 

In preparation for 1 July 2021, employers should review their wages arrangements with their employees as these arrangements may impact how businesses budget for and pay your employees superannuation.  We will examine these scenarios closer.

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

  • Employer may elect to take the additional 0.5 percent super (taking the total contribution to 10 percent) 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.
  • 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 

  • Employer is required to pay the additional 0.5% super for each employee.
  • 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 2021. 

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.

Recent changes to superannuation arrangements mean that from 1 July 2022, 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.


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.

To find out more, contact HIA's Workplace Services team

Email us

Share with your network:

More articles on:

{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find guides, how-tos, resources and 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.

  • Legal support
  • Contracts Online
  • Host an apprentice
  • Insurance services
  • Managing safety

Explore Business support

Join Australia’s largest national association for the residential building industry.

Gain access to a huge range of industry products and business services. All designed to help you manage, operate and grow your business.


Why join HIA Join HIA

Got a question? We’re here to help

Put your mind at rest and speak to one of our industry experts, we’re confident that our extensive industry knowledge will cover whatever questions or issues you may have.

Population and residential building hotpots

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

HIA-COLORBOND® steel Housing 100

HIA-COLORBOND® steel Housing 100 2020/21

HIA Trades Report

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

HIA Kitchens and Bathrooms Report

Understand the current and future forecasts for the kitchen and bathroom industries. Published annually.

New home sales report

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

Housing Australia's future

Understand the future of housing in Australia with this comprehensive report on population and growth. Published annually.

HIA Trades Report

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

HIA Stamp Duty Watch

Understand the latest developments in stamp duty on home purchases. Published quarterly.