On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. We understand some pay periods will cross over between June and July when the rate changes.
The percentage employers are required to apply is determined based on when the employee is paid, not when the income is earned. The rate of 10% will need to be applied for all salary and wages that are paid on and after 1 July 2021, even if some or all of the pay period it relates to is before 1 July 2021.
That means, if the pay period ends before 30 June, but the pay date falls on or after 1 July, the 10% rate applies on those salary and wages. The date of salary and wage payment determines the rate of super guarantee payable, regardless of when the work was performed.
For example, if the work was done:
- in June (or partly in June and partly in July) but employees were paid in July, the rate is 10% and contributions totalling 10% of the employee’s ordinary time earnings for the September 2021 quarter must be made to the employee’s super fund by 28 October
- in July but employees were paid in advance (before 1July), the rate is 9.5% and contributions totalling 9.5% of the employee’s ordinary time earnings for the June 2021 quarter must be made to the employee’s super fund by 28 July.
