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From 1 July 2021, employers will be required to increase the minimum superannuation contribution to eligible employees from 9.5% to 10% of an employee’s “Ordinary Time Earnings” (OTE).

This is in accordance with the government’s decision to progressively increase superannuation rates annually to 12% by July 2025.

Depending on whether an employee’s annual salary is referred to as a Total Remuneration Package (inclusive of superannuation) it may result in a decrease in an employee’s wages.

If you need help to work out how much super you need to pay for your employees after the rate increases, you can use the ATO’s super guarantee contributions calculator.

Independent Contractors

It is important to note that some independent contractors are also deemed statutory employees for the purpose of the Superannuation Guarantee Act and thus will receive the superannuation increase as well.

Not sure if your workers are employees or contractors? BetterHR can help with expert HR advice.

Already a subscriber? Login to BetterHR. Not yet a subscriber? Call 1300 659 563 or schedule a chat.

Update Your Payroll From 1 July

Payrolls will need to be adjusted as of 1 July 2021 for all payments from that date.

Super Contribution Caps

Super contribution caps will also increase from 1 July 2021.

To learn more:

Need help?

Visit the ATO website:

Contact the HR experts at BetterHR. Our team can assist you in reviewing your employee and contractor arrangements to ensure ongoing compliance.

Call 1300 659 563 or contact us online.