From July 1, the superannuation rate increased from 9.5 to 10 per cent, with further increases scheduled for the coming years. It may impact your take-home salary – here’s how.
The superannuation guarantee rate increased from 9.5 per cent to 10 per cent on July 1. This means that employee salary packages will now include a minimum of 10 per cent superannuation. The rate will also increase by 0.5 per cent each year from July 2022, until it reaches 12 per cent in July 2025.
The increase is welcome news for employees, whose workplaces will cover the rise. You’ll probably be expecting your employer to pay for the increase, which means you’ll see a rise in your superannuation contribution on your payslip, without if affecting your take-home pay. But there have been some concerns that employees will have to shoulder the load, meaning your take-home pay will decrease slightly in order to pay the 0.5 per cent increase in your super earnings. If this is the case, you won’t actually earn any more money, it’ll just be distributed differently.
There’s currently no legislation in place to prevent employers from doing this, as it can be decided based on the wording in your contract. Your contract will either state that your super should be paid on top of your base salary, or that it’s included in your total salary package. If you’re in the latter category, your take-home pay could decrease in order to accommodate for the super increase.
It’s best to talk to your employer and check your payslip and contract to see exactly how you’ll be affected, but from July 1 your payslips will include 10 per cent super regardless.
The superannuation rate rise was announced following an increase to the minimum wage that also came into effect from July 1. You can view a table outlining the superannuation increases over the next few years on the Federal government’s website.
Photography: Ben Moynihan
