Superannuation changes
What are the new changes to super?
The latest changes to super in Australia cover two key areas:
- Super Guarantee increase
- Removal of the $450 threshold for super contributions
Increase to the Super Guarantee
From 1 July 2024 the Super Guarantee will increase to 11.5%. It will then increase by a further 0.5% on 1 July 2025 to reach 12%. These small increases to the Super Guarantee could make a big difference to super member balances in the long term due to the magic of compound interest.
Removing the $450 threshold for super contributions
The $450 monthly earnings threshold for superannuation contributions was removed on 1 July 2022. Under the change, employers are required to pay the Superannuation Guarantee on the wages of employees’ earning less than $450 per month. Low income earners will see the benefit from this change.
Note that if you are under the age of 18, unless you are covered by a workplace agreement that states otherwise, you need to work more than 30 hours in a week to be entitled to compulsory Super Guarantee contributions. See here for further details.
The changes to superannuation rules above are all in effect today, however a number of other proposed changes may be in the pipeline. The latest changes to pensions may also affect your retirement planning or income.
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